Which of the Following Is a True Statement

question 111

Multiple Choice

Which of the following is a true statement?

• A) Direct foreign investment to DVCs is increasingly provided by commercial banks.
• B) Direct foreign investment to DVCs has dwindled to near zero in recent years.
• C) Approximately 5 percent of the GDP of IACs goes to foreign aid.
• D) Foreign aid from the IACs to the DVCs has greatly expanded in the past several years.

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Definitions:

Equity Income

The earnings derived from an investment in the shares of another company, where the income is recognized in proportion to the ownership percentage.

Equity Method

An accounting technique used by a company to record its investment in another company, based on the entity's net asset value and subsequent earnings and losses.

Accounting Objective

The main goal of accounting, which is to provide financial information that is relevant, reliable, and useful for decision-making purposes.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.