Under the Equity Method, the Revenue from the Investment Appears

question 55

Multiple Choice

Under the equity method, the revenue from the investment appears on:

• A)the balance sheet as a long-term asset.
• B)the income statement as Other Revenue.
• C)the balance sheet as Other comprehensive income.
• D)none of the above.

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Definitions:

Absolute Value

The distance of a number from zero on the number line, without considering direction.

Money Income

Refers to the total amount of monetary income received by an individual or household over a certain period of time, including wages, salaries, bonuses, and any other income in cash forms.

Factors of Production

The resources used in the production of goods and services, typically categorized into land, labor, capital, and entrepreneurship.

Entrepreneurial Ability

The skill or talent required to conceptualize new products or services, create businesses, and achieve economic success.