Accounting for long-term investments in equity securities with control uses the:

Question

Quizplus · Accepted Answer

The best choice for accounting for long-term investments in equity securities with control is the consolidation method. This method involves combining the financial statements of the investor and the investee companies as if they were one entity. This method is used when the investor has control over the investee company, which is typically indicated by owning more than 50% of the investee's voting shares. The consolidation method reports the investor's share of the investee company's net assets, revenues, and expenses on the investor's financial statements.

Accounting for Long-Term Investments in Equity Securities with Control Uses