Legal Encyclopedias

question 3

Multiple Choice

Legal encyclopedias

• A) are primary authority
• B) include Corpus Juris Secundum and American Jurisprudence 2d
• C) rarely contain footnotes
• D) a and c
• E) a, b, and c

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Definitions:

Initial Value Method

An accounting method that records assets and investments at their original cost without adjusting for increases or decreases in market value.

Partial Equity Method

A method of accounting for an investment where the investor recognizes income to the extent of dividends received and any changes in the investee's equity.

Equity Method

An accounting technique used to assess the profits earned by investments in other companies, recognizing income based on the pro-rata share of earnings.

Investment in Brinkman Corp.

The purchase of equity or debt securities of Brinkman Corporation as a form of investment, expecting to earn returns.