The use of the equity method of accounting by investors in unincorporated joint ventures results in off-balance-sheet financing by the investors.

Name: The use of the equity method of accounting by investors in unincorporated joint ventures results in off-balance-sheet financing by the investors.
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Question

Quizplus · Accepted Answer

The equity method of accounting does not consolidate the joint venture's assets and liabilities on the investor's balance sheet, resulting in off-balance-sheet financing.

The Use of the Equity Method of Accounting by Investors