Which of the Following Statements Regarding the Equity Method Is

question 15

Multiple Choice

Which of the following statements regarding the equity method is correct?

• A)to avoid double counting,dividends received from an associate are deducted from the carrying amount of the investment account.
• B)the investor records a journal entry to adjust the carrying amount of the asset "investment in associate" and record "share of profit or loss of associate" as income for the period
• C)the share of the investee's net assets taken up by an investor is its percentage ownership interest in the associate
• D)all of the above

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Definitions:

Cognitive Processes

Mental activities involved in the acquisition, storage, manipulation, and retrieval of knowledge.

Cultural Contexts

The environment and social factors that influence the values, beliefs, behaviors, and practices of individuals and groups within a society.

Cognitive Differences

Variances in mental processes among individuals, including in perception, memory, problem-solving, and decision-making, among others.

Cultural Values

Cultural values are the core principles and ideals upon which an entire community exists, influencing beliefs, behaviors, and social norms.