A Piece of Rope Is Pulled by Two People in a Tug-Of-War

question 34

Multiple Choice

A piece of rope is pulled by two people in a tug-of-war. Each pulls with 400 N of force. What is the tension in the rope?

• A)0 N
• B)400 N
• C)600 N
• D)800 N
• E)none of the above

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Definitions:

Equity in Subsidiary Earnings

The share of earnings attributed to the parent company from its ownership interest in a subsidiary.

Equity Method

An accounting method used to record investments in associate companies where the investor has significant influence but not full control, typically 20%-50% ownership. The investor's share of the investee's net income or loss is reflected in the investor's financial statements.

Net Income

A company's profit after deducting expenses and taxes from revenue.

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.