If a Corporation Changes from Reporting Investments on the Cost

question 153

True/False

If a corporation changes from reporting investments on the cost basis to reporting on the equity basis, the prospective approach of reporting must be used.

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Definitions:

Assumed Name

An assumed name, also known as a trade name or "doing business as" (DBA), is a name a business uses that is different from its legal, registered name.

Device

A piece of equipment designed for a particular purpose, often electronic in nature.

Demand Instrument

A financial document that requires the payment of money immediately or on demand.

Time Of Payment

The specific period or date by which payment for goods or services received must be made.