When the Cost Method Is Used to Account for an Equity

question 34

Multiple Choice

When the cost method is used to account for an equity investment, the carrying amount of the investment is affected by

• A)the profit of the investee.
• B)dividend distributions of the investee.
• C)both the profit and the dividend distributions of the investee.
• D)neither the profit nor the dividend distributions of the investee.

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Definitions:

William Julius Wilson

An influential American sociologist known for his research and writing on race, class, and inequality in the United States.

Antidiscrimination Laws

Legislation designed to prevent discrimination on the basis of race, gender, religion, national origin, physical disability, or other protected characteristics.

Affirmative Action

Policies and practices designed to increase opportunities for historically underrepresented groups in various areas of society, including education and employment.

Melting Pot

A metaphor for a heterogeneous society becoming more homogeneous through the blending of different cultures, ethnicities, and nationalities.