The Stock Investments account is debited at acquisition under both the equity method and cost method of accounting for investments in common stock.

Stock Investments Account

A financial account holding shares of stocks that represents ownership in companies.

Equity Method

An accounting technique used to record investments in associate companies, reflecting the investor's proportional share of the investee's net income or losses.

Cost Method

An accounting method in which the investment in common stock is recorded at cost, and revenue is recognized only when cash dividends are received.