Stevie Only Brushes His Teeth at Night When Reminded by His

question 39

Multiple Choice

Stevie only brushes his teeth at night when reminded by his father. Otherwise he hops straight into bed with a book. Stevie's dental hygiene is an example of:

• A) true obedience.
• B) conformity.
• C) reference groups.
• D) compliance.

Recognize and apply the equity method of accounting for investments in associates and joint ventures.

Account for dividends received from an investment in an associate.

Identify the criteria for significant influence and its implications for equity accounting.

Adjust the investor's share of profit for intra-group transactions resulting in unrealised profits.

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Definitions:

Credit

An accounting entry that increases liabilities or equity or decreases assets, representing a transfer of value in financial transactions.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to verify that total debits equal total credits.

Mathematical Equality

A situation in mathematics where two expressions are equivalent in value, denoted by the equal sign.

Ledger

A comprehensive book or database of financial accounts where all transactions are recorded, typically categorized by account.