When Applying the Rules of the Equity Method,the Equity Investments

question 139

Multiple Choice

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

• A) the dividend decreases the investor's investment
• B) the dividend is treated as earnings rather than a return of capital
• C) there is a decrease in the dividend liability
• D) the dividend increases the total assets

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Definitions:

Controversial Children

Children who provoke debate or disagreement due to their behaviors, needs, or circumstances, often within educational or social contexts.

Dominant Children

In reference to social hierarchies, those children who control “resources” such as toys, play spaces, and decisions about group activities.

Group Resources

The collective assets, capabilities, and tools available to a group that can be leveraged to achieve common goals or tasks.

Social Structure

Social structure refers to the organized patterns of social relationships and social institutions that compose a society.