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Accounting 308 Chapter 2
Terms in this set (9)
If Push Company owned 51 percent of the outstanding common stock of Shove Company, which reporting method would be appropriate?
Usually, an investment of 20 to 50 percent in another company's voting stock is reported under the:
From an investor's point of view, a liquidating dividend from an investee is
A dividend declared by the investee in excess of its earnings since acquisition by the investor
Under the cost method of accounting for a stock investment, the differential:
is not amortized or written off
Which of the following observations is NOT consistent with the cost method of accounting
Investee dividends from earnings since acquisition by investor are treated as reduction of investment
A change from the cost method to the equity method of accounting for an investment in common stock resulting from an increase in the number of shares held by the investor requires:
retroactive restatement as if the investor always had used the equity method.
Under the equity method of accounting for a stock investment, the investment initially should be recorded at
Which of the following observations is consistent with the equity method of accounting?
Its primary use is in reporting nonsubsidiary investments
The consolidation process consists of all the following except:
Closing the subsidiary's earnings into the parent's retained earnings
THIS SET IS OFTEN IN FOLDERS WITH...
Advanced Accounting Ch. 11 & Ch. 19
Advance Accounting Chapter 18
ACCT 403 ch15
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