Suppose an Astronaut Is Far from a Planet with a Very

question 17

Multiple Choice

Suppose an astronaut is far from a planet with a very strong gravitational field. The astronaut is also watching a clock on the surface of this planet. During the time in which his own clock ticks out a time of 1 hour, how much time does the clock on the planet tick out?

• A) less than 1 hour (but more than zero)
• B) no time at all
• C) more than 1 hour
• D) exactly 1 hour, the same as the astronaut's clock

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Definitions:

Equity Method

An accounting technique used to record investments in which the investor has significant influence over the investee but does not have full control.

Dividends

A portion of a company's earnings distributed to its shareholders, typically in the form of cash payments or additional shares.

Straight Line Amortization

A method of allocating the cost of an intangible asset over its useful life in equal installments.

Equity Method

An accounting technique used to record investments in which the investor has significant influence, but not control, over the investee.