Which of the Following Would Increase Labor Productivity

question 4

Multiple Choice

Which of the following would increase labor productivity?

• A)A decrease in the amount of capital per unit of labor
• B)A change in technology that improves the quality of capital
• C)A decrease in the unemployment rate
• D)An increase in the number of inexperienced workers entering the labor force
• E)A decrease in the quality of capital

Calculate and interpret the effects of dividends and net income on the investment account under the equity method.

Understand the accounting treatment and classification of investments on the cash flow statement.

Recognize the criteria for the use of consolidation accounting and when to apply the equity method.

Calculate the carrying amount of investments using the equity method.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Fair Value

A reevaluation measure used to assess the worth of an asset or liability based on current market conditions, focusing on the price that would be received to sell the asset or needed to transfer the liability.

Partial Equity Method

An accounting method used for investments, wherein an investor recognizes its share of investee profits, but only to the extent of dividends received.

Equity Income

Income that an investment generates from dividends on stocks or mutual funds, indicating earnings derived from ownership interests in companies.