Demonstrating How an Economic Variable Changes from One Year to the Next

question 100

Multiple Choice

Demonstrating how an economic variable changes from one year to the next is best illustrated by a

• A) time-series graph.
• B) linear graph.
• C) Venn diagram.
• D) scatter diagram.
• E) cross-section graph.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment's value is adjusted for the investor’s share of the investee's profits or losses.

Investee Earnings

Represents the portion of profits or losses from investments in other entities that the investing company includes in its own financial statements.

Voting Common Stock

A type of equity security that grants its holders the right to vote on corporate policies and the election of the board of directors.

Consolidation Accounting

A method of accounting in which the financial statements of a parent company and its subsidiaries are combined to present a single economic entity.