When the Cost Method Is Used to Account for an Equity

question 30

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 net income of the investee.
• B) dividend distributions of the investee.
• C) both the net income and the dividend distributions of the investee.
• D) neither the net income nor the dividend distributions of the investee.

---

Definitions:

Fixed-Interval Schedule

A type of reinforcement schedule in operant conditioning where rewards are provided after a specific, constant period of time has passed.

Variable-Ratio Schedule

A reinforcement schedule in which the number of responses needed for a reward varies, this schedule tends to produce a high and consistent rate of response.

Fixed-Ratio Schedule

A type of reinforcement schedule in behaviorist theories where a response is reinforced only after a specified number of responses.

Violent Shows

Television or online content that prominently features acts of physical force intended to hurt, damage, or kill someone or something.