With which of the following methods of accounting for a business combination does consolidation of assets and liabilities occur only to the extent of the stock acquired by the parent?

Question

Quizplus · Accepted Answer

Proportionate consolidation is the method where consolidation of assets and liabilities occurs only to the extent of the stock acquired by the parent. This method is typically used for joint ventures where each party includes their share of the assets, liabilities, income, and expenses in their financial statements.

With Which of the Following Methods of Accounting for a Business