A Racehorse Cannot Stand on One Leg, but When It

question 43

Multiple Choice

A racehorse cannot stand on one leg, but when it runs it rarely has more than one leg on the ground. Why is a running horse more stable than a standing one?

• A)Its legs tilt so the hooves fall in line with its center of gravity.
• B)Its momentum gives it stability.
• C)Its internal organs act like a gyroscope.
• D)It uses its neck for balance the way a tightrope walker uses a pole.

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Definitions:

Historical Cost

The original purchase price or cost of acquiring an asset, not adjusted for inflation or market changes.

Equity Method

An accounting technique used to record investments in other companies, recognizing the investor's share of the investee's net income.

Parent Company

A company that holds enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Consolidated Financial Statements

Financial reports that combine the accounts of a parent company and its subsidiaries into a single document.