Under the Cost Method, the Investment Account Is Reduced When

question 22

Multiple Choice

Under the cost method, the investment account is reduced when:

• A) there is a liquidating dividend.
• B) the subsidiary declares a cash dividend.
• C) the subsidiary incurs a net loss.
• D) none of these.

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Definitions:

Rating Scale

A scale or system for measuring or evaluating the performance, level of agreement, or intensity of feelings on a linear or ordinal basis.

Numerical Line

A visual representation of numbers on a straight line, where each point corresponds to a number, often used to teach basic math concepts such as addition and subtraction.

Likert-Type Scale

Sometimes called graphic scales, this kind of rating scale contains a number of items that are being rated on the same theme and are anchored by both numbers and a statement that correspond to the numbers.

Semantic Differential

A scale used for measuring the connotative meaning of objects, events, and concepts, focusing on the qualitative aspects of attitudes.