Which of the following accounting methods is used to account for controlling interest investments?

Question

Quizplus · Accepted Answer

The consolidation method is used to account for controlling interest investments. This method combines the financial statements of the parent company and its subsidiaries into a single set of consolidated financial statements, eliminating any intercompany transactions and controlling interest that exist in the individual company statements. The cost method is used for investments where the investor has significant influence but not control, while the acquisition method is used when a company acquires another company and has control over it. The discounted cash flow method is used for valuing future cash flows of investments.

Which of the Following Accounting Methods Is Used to Account