Identify the Following Terms

question 15

Short Answer

Identify the following terms.
-Iran's Mohammad Khatami and Muhmmad Ahmadinejad

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Definitions:

Equity Method

An accounting technique used by firms to assess the profits earned by their investments in other companies by reporting these profits as income.

Intra-entity Gross Profit

The profit recognized on transactions carried out between divisions or departments within the same company.

January 1 Retained Earnings

The amount of net income left over for a business at the start of a new calendar year after all dividends have been paid out to shareholders.

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.