The equity method is used,

Question

Quizplus · Accepted Answer

The equity method is commonly used by Japanese, U.S. and United Kingdom companies. While it may be used by some corporations in other countries, it is not a requirement or standard practice. Option A is incorrect because not all corporations use the equity method. Option C is incorrect because the decision to use the equity method is not based solely on proportional consolidation resulting in different income. Option D is incorrect because while Germany and Switzerland may use the equity method, it is not the only method used by companies in those countries.

The Equity Method Is Used