In Calculating the Entity's Share of Equity of the Associate

question 1

Multiple Choice

In calculating the entity's share of equity of the associate or joint venture, dividend revenue will need to be removed from the entity's consolidated financial statements since the ______________ method will now replace the ______________ method of accounting for the investment.

• A)fair value; equity
• B)consolidation; proportionate consolidation
• C)equity; cost
• D)intercompany; cost.

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Definitions:

Marginal Revenue Product (MRP)

The additional revenue generated by employing one more unit of a resource or factor of production.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, holding all other factors constant.

Additional Units

Incremental quantities of a product or resource, often discussed in contexts like production, costs, and benefits analyses.

Marginal Physical Product

It is the additional output generated by employing one more unit of a specific input, keeping other inputs constant.