Cost Method & Equity Method. If your company invests in another firm, whether it's to form a business alliance or just to make a profit, that investment must be accounted for on your balance sheet.

A balance sheet consists of three primary categories: assets, liabilities, and equity. Under the standard balance sheet equation, assets must equal liabilities plus equity.

Investors should be cautious--and perhaps take a look at the auditor's reliability--when companies utilize the equity method for accounting in situations where they appear to control the subsidiary.

The balance sheet —one of three core financial statements used to evaluate a business—lists a company's assets, liabilities, and shareholders' equity at a specific point in time.

Ways to Increase Equity on a Balance Sheet. In accounting terms, a company's equity balance represents its net worth and may be calculated as a company's total assets minus its total liabilities.

AcSEC issued the ED, Accounting for Investors’ Interests in Unconsolidated Real Estate Investments, in November 2000. The proposed SOP focuses on who should apply the equity method of accounting to ...

Accounting and Financial Management Governance – Balance Sheet The Balance Sheet represents the financial position of the University and Business Areas at a particular point in time. The Balance ...

Online Exclusive: Accounting Basics for Small Contractors — The Balance Sheet Assets = Liabilities + Owners’ Equity Assets are the things that a company owns. There are current assets and long-term ...

Stockholders' equity is the book value of shareholders' interest in a company; these are the components in its calculation.

A balance sheet is a type of financial statement that lists a company's assets, liabilities, and shareholders' equity. The assets should be in "balance" and equal the total liabilities and ...

A balance sheet is a financial statement that provides a broad overview of a given firm's assets, liabilities and shareholders' equity. This important document gives management and other ...