When Applying the Rules of the Equity Method,the Long-Term Investments

question 3

Multiple Choice

When applying the rules of the equity method,the Long-term Investments account is credited for the receipt of a cash dividend because ________.

• A)the dividend decreases the investor's investment
• B)it increases the investor's investment
• C)there is an increase in dividend liability
• D)the dividend increases the total assets

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Definitions:

Femur

The thigh bone, which is the longest, strongest, and heaviest bone in the human body, connecting the hip to the knee.

Cancellous Bone

A type of porous bone found at the end of long bones and in the inner layers of other bones, also known as spongy bone.

Compact Bone

The dense, hard outer layer of bone that provides strength and structure.

Ribs

Ribs are a series of long, curved bones forming the rib cage, which protects the chest cavity and supports the upper body.