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:

Gum Disease

A set of inflammatory conditions affecting the tissues surrounding the teeth, which can lead to loss of teeth if not treated.

High-Frequency Sounds

Sounds that have a high pitch, typically those with a frequency of 2,000 Hz (Hertz) or higher, often beyond the range of human hearing as age increases.

Hearing Aid

A device designed to improve hearing by making sound audible to a person with hearing loss.

Adapt

The process of adjusting to new conditions or environments.