When one company has an interest in another company it has equity in that company. Under certain circumstances, the appropriate way for the company to account for that investment on its own books is ...

The cost and equity methods of accounting are used by companies to account for investments they make in other companies. In general, the cost method is used when the investment doesn't result in a ...

Managing the financial accounts for one company is tough. If your business invests in another business, keeping the books becomes even more complicated. If, say, you buy one of your suppliers, do you ...

For most investors, the proper way to account for your investing profits and losses is with the cost method of accounting. This method is not the only choice, however. For investments where the ...