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My name is Ann [436]
4 years ago
11

Under the equity method, when the company's share of cumulative losses equals its investment and the company has no obligation o

r intention to fund such additional losses, which of the following statements is true?A) The investor should change to the fair-value method to account for its investment. B) The investor should suspend applying the equity method until the investee reports income. C) The investor should suspend applying the equity method and not record any equity in income of investee until its share of future profits is sufficient to recover losses that have not previously been recorded. D) The cumulative losses should be reported as a prior period adjustment. E) The investor should report these losses as extraordinary items.
Social Studies
1 answer:
nalin [4]4 years ago
7 0

Answer:

C) The investor should suspend applying the equity method and not record any equity in income of investee until its share of future profits is sufficient to recover losses that have not previously been recorded.

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Organizations tend to increase the amount of planning and control closer to the point of execution when a mechanistic approach to organizing is used.

<h3>What is a mechanistic approach?</h3>
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Therefore, organizations tend to increase the amount of planning and control closer to the point of execution when a mechanistic approach to organizing is used.

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brainly.com/question/18454646

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