Under the Equity Method, When Is the Investment Account on the Balance

question 12

Multiple Choice

Under the equity method, when is the investment account on the balance sheet credited?

• A)When the investee reports net earnings.
• B)When the investee declares a dividend.
• C)When the investment is originally acquired and the investee reports net earnings.
• D)The equity account is never credited.

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Definitions:

Gametophyte

The haploid phase in the life cycle of plants and algae that produces gametes for sexual reproduction.

Pollen Grain

The immature male gametophyte of seed plants (gymnosperms and angiosperms) that produces sperm capable of fertilization.

Microsporocytes

Cells in plants that undergo meiosis to produce microspores, which eventually develop into male gametophytes or pollen grains.

Strobili

Strobili are reproductive structures in plants, especially conifers and ferns, that resemble cones or simple spikes and are composed of scales or bracts.