Which of the Following Results in a Decrease in the Investment

question 63

Multiple Choice

Which of the following results in a decrease in the investment account when applying the equity method?

• A) Dividends paid by the investor.
• B) Net income of the investee.
• C) Net income of the investor.
• D) Share of gross profit on intra-entity inventory sales for the current year.
• E) Purchase of additional common stock by the investor during the current year.

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Definitions:

Account Analysis

The process of reviewing and evaluating a customer's account to understand their needs, spending patterns, and potential for future transactions.

80/20 Principle

A rule of thumb stating that 80% of outcomes (or outputs) come from 20% of all causes (or inputs) for any given event, also known as the Pareto Principle.

Sales Territory

A specified geographical region or group of customers assigned to a salesperson or team for the purpose of selling products or services.

ELMS System

An acronym for Electronic Learning Management System, a digital platform used to create, deliver, manage, and track educational courses and training programs.