The accounting method applied to investments in associates, known as the equity method, is also known as the:
A) entity method of consolidation.
B) significant influence method.
C) multi-line consolidation method.
D) one-line consolidation method.

Question

Quizplus · Accepted Answer

The equity method is often referred to as the one-line consolidation method because the investor's share of the associate's net income is reported as a single line item in the investor's financial statements.

The Accounting Method Applied to Investments in Associates, Known as the Equity