When the Equity Method of Accounting for Investments in Another

question 43

Multiple Choice

When the equity method of accounting for investments in another company's voting shares is used, the balance of the investment in shares account is affected by:

• A)the excess market price of the shares over their cost.
• B)only the dividends of the investee company.
• C)only the earnings of the investee company.
• D)both the earnings and dividends of the investee company.

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Definitions:

Sexuality

The capacity for sexual feelings, a part of human nature involving how individuals experience and express themselves as sexual beings.

Equal Education

The principle of providing the same level of education and educational opportunities to all individuals, regardless of their background, race, or socioeconomic status.

Female-dominated Jobs

Occupations where the workforce comprises predominantly of women, often due to societal norms, preference, or historical exclusion in other fields.

Earned Less

A situation or condition wherein individuals receive lower income or wages, often highlighted in discussions of wage inequality and gender pay gaps.