Nessie

Equity Method of Accounting Definition & Example.



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The equity method of accounting is a method used to account for investments in common stock of another company. Under the equity method, the investment is initially recorded at cost and is then adjusted over time to reflect the investor’s share of the investee’s net income or loss. The equity method is used when the … Read more

What is the accrual principle?



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The accrual principle is one of the main rules established regarding the accounting of a . The accrual principle concept is collectively accepted and included within the General accounting plan. In accordance with this accounting principle, all movements and banking or economic transactions must be compulsorily recorded at the time they take place, whether they … Read more