If an Investor Company Is Adjusting Its Investment Account Each

question 66

Multiple Choice

If an investor company is adjusting its investment account each period by their share of the investee's net income less dividends declared, what method of accounting for its investment is it using?

• A)Consolidation
• B)Equity
• C)Cost
• D)Fair value

---

Definitions:

Ending Inventory

The total value of all unsold goods that a company has in stock at the end of an accounting period.

Units

A measure of quantity or amount in terms of a standardized value, often used to quantify the output or production of goods.

Produced

Refers to items or goods that have been created or manufactured.

Direct Materials

Raw materials that can be directly attributed to the production of a product, and are an integral part of the finished product.