Although Capital Asset Transaction Do Not Directly Related to the Current

question 20

True/False

Although Capital Asset Transaction do not directly related to the current year's profit of the organization,they do impact on the wealth fluctuations of the organization over the period of time.

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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.

Common Stock

A type of security that signifies ownership in a corporation and represents a claim on part of the company's profits and assets.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but not full control over that company.