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What difference between proportionate method of consolidation and equity method of consolidation?
If there is a joint venture between two companies. Each of the companies, under the equity method, only records half of the income from the joint venture on the income statement-nothing on balance sheet. With the proportionate consolidation method, the parent companies record half of the liabilities and assets from the joint venture.
What else can I help you with?
Explain the difference between share of customer and customer equity.?
Explain the difference between share of customer and customer equity
What is the difference between debt negotiation and consolidation?
Debt Consolidation takes your debt and combines into one single loan, usually tied up in your house equity. Debt Negotiation on the other hand attempts to reduce the amount of debt you have by cutting the total amount you owe.
What is the difference between asset and equity?
The main difference between asset and equity is that assets represent what a company owns and what it owes, while equity represents the ownership interest in the company held by its shareholders. In simpler terms, assets are what a company has, while equity is who owns the company.
Difference between equity and owner's equity?
EQUITY:- Equity is the term in which liability is introducedOwner Equity :- Owner Equity is the term in which liabilty and owner capital is introduce...it is some time called Equities....
Difference between common law and equity?
common law also make by artificially and equity make atumetically
What is the difference between equity and justice?
justice is to be right or wrong/fair equity is right and wrong um equal
Home equity is?
Home equity is defined as the difference between the fair market value and any liens on the home.
Why would you use equity method instead of proportionate consolidation method and how does this affect the shareholders?
The equity method is used instead of proportionate consolidation when an investor has significant influence over an investee but does not have control, typically represented by ownership of 20-50% of the investee's voting stock. This method records the investor's share of the investee's profits and losses, impacting the investor's income statement and balance sheet without directly consolidating the investee’s assets and liabilities. This approach can provide a clearer picture of the investor's financial position and performance, as it avoids inflating the balance sheet with the investee’s figures. For shareholders, this method can lead to a more transparent representation of the company's investments and their associated risks and rewards.
The difference between assets and liabilities is called?
Net Worth or Equity
What is the difference between a company's assets and its liabilities or its net assets is?
Equity
Difference between retrun on equity and return on capital employed?
return on capital employed (ROCE) is net income/(debt&equity) whereas return on equity is income/equity (without debt).
What is a journal entry that moves the difference between revenue and expenses from the income statement to the owner's equity?
expenses decrease owner's equity where as revenue increases owner's equity
