Which Method of Accounting Initially Recognises the Investment at Cost

question 21

Multiple Choice

Which method of accounting initially recognises the investment at cost and then adjusts the investment for the post- acquisition changes in the investor's share of net assets of the investee?

• A)investment method
• B)entity method
• C)equity method
• D)cost method

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Definitions:

Skinner Box

An experimental apparatus developed by B.F. Skinner for studying behavioral conditioning, especially reinforcement and punishment, in animals.

Onset of Light

The moment or time when light begins or appears, often signifying the start of the day or the end of nighttime.

Conditioned Reinforcer

A stimulus that becomes reinforcing by being linked to a primary reinforcer, also referred to as a secondary reinforcer.

Primary Reinforcer

A naturally reinforcing stimulus, such as food or drink, that fulfills a basic biological need and does not require learning to become desirable.