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LaTonya Lewis-Tunsil
on Nov 13, 2024

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Under the equity method, a stock purchase is recorded at its original cost and is not adjusted to fair market value each accounting period.

Equity Method

An accounting technique used to record investments in other companies where significant influence exists but control does not.

Fair Market Value

The price at which an asset would sell under normal market conditions, reflecting the value between willing buyers and sellers.

  • Differentiate the approaches used in investment accounting.
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Mikail ClarkeNov 18, 2024
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