If the Level of Ownership Changes Such That the Investor

question 109

Multiple Choice

If the level of ownership changes such that the investor must change the accounting method to report the investment,the investor should

• A)continue to use the same method to abide by the consistency principle
• B)continue to use the same method,but change the book value of the investment going forward
• C)discontinue the old method and sell the investment
• D)discontinue the old method and adopt the new method going forward
• E)none of the above

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Definitions:

Aristotle

An ancient Greek philosopher and scientist whose work covers a wide range of subjects; he is considered one of the greatest philosophers in history.

Emotions

Complex psychological states involving physiological arousal, expressive behaviors, and conscious experience, often triggered by environmental stimuli.

Id

In psychoanalytic theory, the part of the mind in which innate instinctive impulses and primary processes are manifest.

Ego

In psychoanalytic theory, a component of the personality that is responsible for dealing with reality while working to satisfy the demands of both the id and the superego, in a more general sense, often used to refer to a sense of self-esteem or self-importance.