AGE OF INVENTORY Definition

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AGE OF INVENTORY see DAYS INVENTORY.

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AVERAGE FUNDS EMPLOYED see FUNDS EMPLOYED.

EQUITY ACCOUNTING is the practice of showing in a companys accounts the share of undistributed profits of another company in which it holds equity ownership (usually below 50%). The share of profit shown is usually equal to its share of the equity in the other company. The profit may not actually be paid over, but the equity holding company has a right to this share of the undistributed profit.

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