Which of the Following Results in a Decrease in the Equity

question 67

Multiple Choice

Which of the following results in a decrease in the Equity in Investee Income account when applying the equity method?

• A) Dividends paid by the investor.
• B) Net income of the investee.
• C) Unrealized gain on intra-entity inventory transfers for the current year.
• D) Unrealized gain on intra-entity inventory transfers for the prior year.
• E) Extraordinary gain of the investee.

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Definitions:

Traditional Organizational Structures

Hierarchical arrangements where authority flows from the top down, characterized by clear departmental boundaries and responsibilities.

Functional

Relates to the specific role or purpose something serves within a larger system or structure.

Divisional

Pertains to a business structure where operations are segmented based on product lines, markets, or geographical areas.

Geographical Structures

Organizational structures that are arranged based on geographical regions or territories.