Kyle Company Reports Its Income from Its Investment in Bingham

question 80

Multiple Choice

Kyle Company reports its income from its investment in Bingham Company under the equity method. Kyle recognized income of $150,000 from its investment in Bingham during the current year. No dividends were declared or paid by Bingham during the year. Kyle would show the $150,000 in its statement of cash flows for the current year prepared under the indirect method as

• A) cash from investing activities.
• B) a reduction of the investment account.
• C) a deduction from net income in the operating activities section.
• D) a noncash activity.

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Definitions:

Developmental Psychologists

Professionals who study the psychological growth of individuals, from infancy through adulthood, focusing on how thought, feeling, and behavior change with age.

Experience Sampling Method

A research method that involves collecting data about subjects' experiences in real time or close to real time, usually through the use of prompts or signals at random times.

Globalization

The process by which businesses or other organizations develop international influence or start operating on an international scale, leading to increased interconnectedness.