All of the Following Statements Regarding Accounting for Influential Securities

question 32

Multiple Choice

All of the following statements regarding accounting for influential securities under U.S.GAAP and IFRS are true except:

• A)Under the equity method,the share of investee's net income is reported in the investor's income in the same period the investee earns that income.
• B)Under the consolidation method,investee and investor revenues and expenses are combined.
• C)Under the equity method,the investment account equals the acquisition cost plus the share of investee income plus the share of investee dividends.
• D)Under the consolidation method,nonintercompany assets and liabilities are combined (eliminating the need for an investment account).
• E)U.S.GAAP companies commonly refer to noncontrolling interests in consolidated subsidiaries as minority interests whereas IFRS companies use noncontrolling interests.

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Definitions:

Communities of Practice

Communities of individuals united by a common interest or passion, who enhance their skills and knowledge by interacting regularly.

Enthusiasm

A feeling of energetic interest in a particular subject or activity and an eagerness to be involved in it.

Content Marketing

An approach in marketing aimed at developing and circulating worthwhile, pertinent, and steady content to capture and keep the attention of a precisely identified group of viewers.

Valuable Information

Data or facts that are useful, beneficial, and relevant to a particular context or decision-making process.