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:

Design Thinking

is a problem-solving approach that involves empathy with users, ideation, prototyping, and testing to develop innovative solutions.

Criteria

Standards or principles by which something can be judged or decided, often used in the evaluation and decision-making processes.

Sleep Needs

The amount of sleep required by an individual to maintain optimal health and well-being, which can vary by age and lifestyle.

Tim Brown

A prominent figure in the design thinking community, known for his contributions to integrating design thinking into business processes.