A Company Using the Equity Method to Account for Long-

question 76

Multiple Choice

A company using the equity method to account for long- term investments should report an unrealized gain on the investment:

• A)only if market exceeds cost.
• B)only if market is below cost.
• C)if the investee stock has fallen below or risen above its cost to the investor.
• D)in no instance. No adjusting entry is made.

Analyze the effects of potential legislative changes on union organizing and employer practices.

Understand the determinants and principles of defining bargaining units.

Identify legal and illegal practices in union elections and understand the consequences of such actions.

Comprehend the role of employer and union tactics in influencing employee decisions during unionization efforts.

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Definitions:

Market Price

The price in the marketplace at which an asset or service can currently be bought or sold.

Stock Outstanding

The aggregate amount of a corporation's stock currently possessed by all its shareholders, encompassing blocks of shares owned by institutional investors and shares that are subject to restrictions.

Shares Issued

The total number of shares that a corporation has legally distributed to shareholders, which may include shares held by the public as well as restricted shares owned by the company's insiders.

Red Herring

A preliminary prospectus filed by a company with the Securities and Exchange Commission (SEC), usually in connection with the company's initial public offering.