Which of the Following Statements Is Incorrect

question 172

Multiple Choice

Which of the following statements is incorrect?

• A) If the investor has significant influence over the investee, the investor must use the equity method of accounting for the investment.
• B) If the investor has control over the investee, financial statements for the two companies must be consolidated.
• C) If the investor has no significant influence over the investee, and can readily determine the fair value of the investment, the investor should report the investment at fair value.
• D) If the investor has no significant influence over the investee company, and the investment has no readily determinable fair value, the investment is reported at cost with unrealized gains and losses reported as part of other comprehensive income.

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Definitions:

Absent Bowel Sounds

An indication that there is reduced or no activity in the intestines, which could suggest a blockage or other gastrointestinal issues.

Patent Nares

Refers to nostrils that are open and unobstructed, allowing for easy airflow.

Gag Reflex

A reflex contraction of the back of the throat, evoked by touching the soft palate, designed to prevent choking.

Enteral Feeding Formula

A nutritional food solution delivered to the gastrointestinal tract through a tube, intended for individuals who cannot ingest food orally.