Devin Plays in the Sand for the First Time

question 24

Multiple Choice

Devin plays in the sand for the first time. Instead of digging in it, he tries to scoop and throw it, just like he plays with water in his bathtub. This is an example of

• A) disequilibrium.
• B) assimilation.
• C) organization.
• D) accommodation.

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Definitions:

Equity Method

A method of accounting that allows an investor to recognize gains and losses through their share of an associate's profits or losses, adjusting the value of their investment accordingly.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) for global use.

Entity Theory

A concept in accounting that treats a business as separate from its owners or other businesses, supporting the preparation of separate financial statements.

Consolidated Net Income

The total net income of a parent company and its subsidiaries after eliminating intercompany transactions, presented in a consolidated financial statement.