Each Transaction Listed in 1 Through 4 Relates to an Investment

question 103

Essay

Each transaction listed in 1 through 4 relates to an investment in a long-term equity security. Place the letter that corresponds to the effect (a through h) the transaction has on the accounting equation in the space provided. You may use each letter more than once or not at all.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Accounting Effects
a. $+A$ and $+L$
b. $+\mathrm{A}$ and $+\mathrm{SE}$ (Contributed Capital)
c. $+\mathrm{A}$ and $+\mathrm{SE}$ (Retained Earnings)
d. $-A$ and $-L$
e. $-\mathrm{A}$ and $-\mathrm{SE}$ (Contributed Capital)
f. $-A$ and - SE (Retained Earnings)
g. $+\mathrm{A}$ and $-\mathrm{A}$
$\mathrm{h}$ . The event is not reported on financial statements.
____ 1. Under the mark-to-market method, the investee company declares a cash dividend.
____ 2. Under the equity method, the investee company declares a cash dividend.
____ 3. Under the mark-to-market method, the investee company recognizes net income.
____ 4. Under the equity method, the investee company recognizes net income.

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Definitions:

Duplication

The act or process of making an exact copy or replica of something, often used in contexts ranging from documentation to biological replication.

Medical Model

A framework in healthcare that views medical issues primarily through biological factors and emphasizes diagnosis, treatment, and cure.

Restrictive Environment

Refers to settings that limit the freedom and interaction of individuals, often used in the context of special education to minimize the removal of students with disabilities from regular educational environments.

Case Management

A collaborative process that assesses, plans, implements, coordinates, monitors, and evaluates the options and services required to meet an individual's health and human service needs.