A Professional Association Enjoys a High Level of Public Trust

question 50

True/False

A professional association enjoys a high level of public trust and confidence even though it can never be legalized.

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Definitions:

One-Line Method

A consolidation method where an investor reports its share of a subsidiary’s or associate’s single line item, such as net income, in its own financial statements.

Equity Method

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

Joint Ventures

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or business activity.

Accounting Methods

The specific rules and procedures used by a company to prepare its financial statements, including cost, accrual, and cash basis methods.