In the Object-Oriented Systems Design Approach

question 90

Multiple Choice

In the object-oriented systems design approach,

• A) objects possess two characteristics-attributes and instances
• B) an instance is a logical grouping of individual objects
• C) inheritance means that each object instance inherits the attributes and operations of the class to which it belongs
• D) operations performed on objects always change attributes

Understand how to account for changes in ownership percentages and their impact on the equity method.

Recognize how intra-entity transactions affect the investment account under the equity method.

Determine the appropriate accounting treatment for downward and upward adjustments in the value of investments.

Recognize the accounting treatments for gains and losses under the equity method.

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Definitions:

Trustees

Individuals or organizations entrusted with the responsibility to manage assets or property on behalf of others, often for a specific purpose or benefit.

Board of Directors

A group of elected individuals who represent shareholders' interests, oversee management, and make strategic decisions for a corporation.

Business Judgment Rule

A legal principle that protects corporate directors and officers when making business decisions, assuming those decisions are made in good faith and with due care.

Duty of Care

The legal obligation of a person to exercise a reasonable standard of care while performing any acts that could foreseeably harm others.