Which methods will result in the same income and shareholders' equity?

Question

Quizplus · Accepted Answer

Different methods of accounting may result in different income and shareholder's equity amounts. Cost accounting regards assets at their historical cost, while consolidation accounting combines financial information of multiple entities. Equity accounting acknowledges investments as an owner's share of net assets, while recognizing dividends and income from investments. Therefore, it is possible for different methods to result in different income and shareholder's equity amounts.

Which Methods Will Result in the Same Income and Shareholders