Which of the Following Statements Is TRUE About the Equity

question 72

Multiple Choice

Which of the following statements is TRUE about the equity method of accounting?

• A)This method is used when the investor has no influence over the associate.
• B)This method is a condensed consolidation that shows the investor's share of the net assets and net income of the investee.
• C)This method record dividends from the associate as income from operations.
• D)This method has the same accounting impact as the amortized cost method.

---

Definitions:

Diluent

A liquid used to dilute a substance, making it less concentrated for easier administration or absorption.

Multidose Reconstituted

Pertaining to a medication that is mixed with a solvent to achieve a liquid form and can be used for multiple doses.

Subsequent Use

Refers to the application or employment of something after the initial use or in a sequence following the first occurrence.

Reconstituted

Describes a substance that has been returned to its original state by adding water or another solvent to a concentrated or dry form.