Examlex
Directions: Apply the knowledge you have gained from Chapter 4 to select the best answer to the questions about the following reading passage.
"Trees make up an essential part of the earth's ecosystem , but rapid deforestation is having harmful effects on the planet. Deforestation refers to the clearance of forests through logging and burning. The main cause of deforestation is the use of trees for lumber and fuel. Forests are also cut down to make room for farming. But while deforestation can provide a short-term boost to struggling economies, it is also causing harm to the environment. Adverse effects of deforestation include erosion of soil, disruption of the water cycle, loss of biodiversity , and flooding and drought. The most harmful effect, though, may be on the climate. Deforestation leads to a greater accumulation of carbon dioxide in the atmosphere, which in turn may warm the planet."
Considering the definition of deforestation , the prefix de most likely means
Cost Method
An accounting approach used to record investments where the investment is listed at its acquisition cost, without recognizing periodic changes in market value.
Equity Investment
An investment in stock or shares representing ownership interest in a company.
Equity Method
An accounting technique used to record investments in other companies, recognizing income in proportion to the investor's share of the company's earnings.
Outstanding Stock
Shares that have been issued by a company and are held by investors, including both public shareholders and company insiders.
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