微信扫一扫
实时资讯全掌握
| Suppose Luna had accounted for the Instate acquisition using the passive method for investments in financial assets rather than the equity method of accounting for intercorporate investments. Explain how the different methods would most likely impact Luna’s financial statements? Under the equity method, Luna will report: A. higher interest coverage ratios and return on investment than under the passive method for investments in financial assets. B. lower net income than under the passive method for investments in financial assets. C. improved debt coverage than under the passive method for investments in financial assets. |