A Friend Is Carving a Roast and You Notice He

question 70

Short Answer

A friend is carving a roast and you notice he is cutting with the grain as opposed to against the grain. Politely explain to him what the difference is and why cutting against the grain is recommended when carving meat.

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Definitions:

Equity Method

An accounting technique used to record investments in associate companies, where the investment is initially recorded at cost and adjusted thereafter for the post-acquisition change in the investor's share of net assets of the investee.

Equity Method

An accounting technique used to record investments in associate companies, whereby an investor adjusts the carrying amount of the investment to recognize its share of the earnings or losses of the associate.

Investment Account

An account held at a financial institution that is used to buy, hold, and sell investments such as stocks, bonds, and mutual funds.

Cost Model

An accounting method that values an asset based on the amount spent to acquire it minus any depreciation.