Which of the Following Accounting Methods Is Used to Account

question 73

Multiple Choice

Which of the following accounting methods is used to account for controlling interest investments?

• A) cost method
• B) acquisition method
• C) consolidation method
• D) discounted cash flow method

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Definitions:

Selling Price

The amount of money for which something is sold or offered for sale to a buyer.

Marked Down

A reduction in the price of goods to stimulate sales or clear out inventory.

Operating Expense

Operating expense includes all necessary expenditures that a business incurs as a result of performing its normal business operations, excluding the cost of goods sold.

Operating Profit

The profit earned from a firm's core business operations, excluding deductions of interest and taxes.