Which of These Is Not a Feature of the Pure

question 8

Multiple Choice

Which of these is not a feature of the pure equity accounting method?

• A) A proportionate share of dividends paid by the investee is debited to the bank account and credited to the investment account
• B) A proportionate change in after-tax profits of the investee is debited to the investment account and credited to share of net profit of associate
• C) A proportionate change in asset revaluations by the investee is debited to the investment account and credited to a revaluation reserve
• D) Any difference between the acquisition price and the amount at which the investment is initially recorded in the investor's accounts is recorded as goodwill

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Definitions:

Information Technology

The employment of computers, storage systems, network components, and other tangible resources, along with various procedures, to generate, process, maintain, safeguard, and share any type of digital data.

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The act of introducing something new or improving an existing product, service, or process.

Entrepreneurship Major

An academic program focusing on teaching students how to start, manage, and grow their own businesses, including lessons on innovation, business planning, and risk-taking.

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