Under the Equity Method, the Investment in Associates Account Is

question 54

Multiple Choice

Under the equity method, the Investment in Associates account is credited when the

• A)associate reports profits.
• B)associate reports a net loss.
• C)associate is originally acquired.
• D)both when the investee reports profits and when the investment is originally acquired.

---

Definitions:

Derivatives Exchanges

Specialized marketplaces where derivatives securities, such as futures and options, are traded.

Electronic Trading

The use of computer systems, often connected to the internet, to execute buy and sell orders in financial markets without the need for a physical trading floor.

Clearing Platform

Infrastructure provided by a clearing house that facilitates the settlement of trades by acting as an intermediary between buyers and sellers.

CME

Stands for Chicago Mercantile Exchange, a major global financial derivatives exchange where various commodities, financial products, and currencies are traded.