When the Equity Method Is Used to Account for Stock

question 147

True/False

When the equity method is used to account for stock investments, the carrying value of an investment is computed as the cost of the investment and adjusted to fair value as of the balance sheet date.

---

Definitions:

Custom Bullet

A user-defined symbol used in a list to mark items, allowing for personalized or thematic list item identifiers.

Table

A structured arrangement of data made up of rows and columns, which can be used to organize, display, and manipulate information.

Top Row

The first, uppermost row in a table or spreadsheet, often used to contain headers or titles for columns.

Last Row

The final row in a table or spreadsheet, which may change as new rows are added or deleted.