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.

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Definitions:

Compass Sense

The sense of direction an animal requires to travel in a straight line toward a destination.

Map Sense

An innate ability or skill that helps organisms navigate through their environment, often seen in migratory animals.

Cognition

The mental processes involved in gaining and using knowledge; cognition is learning and knowing, including awareness, thinking, processing information, reasoning, and awareness of thoughts, perceptions, and self.

Clock Proteins

Molecular components that constitute the biological clock, regulating circadian rhythms in organisms by oscillating in a 24-hour cycle.