Giant Uses the Equity Method to Account for the Operations

question 5

True/False

Giant uses the equity method to account for the operations of its 40% owned subsidiary Little. A portion of Little's profits for the year are included in Giant's GAAP book income.

---

Definitions:

Summarize

The act of presenting a concise statement or overview of the main points of a text, document, or discourse.

Explain

To make something clear or easy to understand by describing or giving information about it.

Case Law

Rules of law announced in court decisions.

U.S. Constitution

The foundational legal document establishing the framework of the federal government and the rights of American citizens.