Which One of the Following Is True of the Equity

question 25

Multiple Choice

Which one of the following is true of the equity method?

• A)The income recognized by the investor is based on the percentage of stock ownership and the amount of earnings reported by the investee.
• B)Market value adjustments are made at yearend.
• C)The receipt of dividends increases net income on the investor's financial statements.
• D)The percent of ownership must be greater than 50% to apply this method.

---

Definitions:

Sexual Desires

Refers to a person's natural or emotional inclination towards sexual activity or expressions of sexual intimacy.

Free Will

Free will is the concept that individuals have the ability to make choices that are not predetermined by past events, genetics, or environment.

Deterministic

The philosophical belief that all events, including moral choices, are determined completely by previously existing causes.

Dream Analysis

A therapeutic technique, often used in psychoanalysis, that interprets the symbolic meaning of dreams to uncover underlying thoughts and feelings.