For Each Transaction Numbered 1 Through 4 Below, Identify Which $\quad$

question 50

Essay

For each transaction numbered 1 through 4 below, identify which effect (a through f) the transaction is most likely to cause. You may use each letter more than once or not at all.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Effects }$
a. Increase in current ratio and earnings per share
b. Decrease in current ratio and earnings per share
c. Does NOT change the current ratio; increases earnings per share
d. Increasesthe current ratio; does NOT change earnings per share
e. Does not change the current ratio or earnings per share
f. Can't determine the effert
_____ 1. The mark-to-market method is used for an investment in long-term equity securities, and the investee company declares a cash dividend.
_____ 2. The equity method is used for an investment in long-term equity securities and the investee company declares a cash dividend.
_____ 3. The mark-to-market method is used for an investment in long-term equity securities and the investee company recognizes net income.
_____ 4. The equity method is used for an investment in long-term equity securities and the investee company recognizes net income.

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Definitions:

Antibiotic

A type of medication used to prevent and treat bacterial infections by killing or inhibiting the growth of bacteria.

Medicine Cup

A small cup, often with marked measurements, used for accurately measuring and administering liquid medication doses.

Oral Medication

A form of medicine taken by mouth to be swallowed or absorbed in the gastrointestinal tract.

Medicine Cup

A small cup, often with marked measurements, used for dispensing liquid medication in specific doses.