Which of the Following Observations Is Consistent with the Equity

question 19

Multiple Choice

Which of the following observations is consistent with the equity method of accounting?

• A) Dividends declared by the investee are treated as income by the investor.
• B) It is used when the investor lacks the ability to exercise significant influence over the investee.
• C) It may be used in place of consolidation.
• D) Its primary use is in reporting nonsubsidiary investments.

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Definitions:

Apples

A fruit produced by an apple tree, widely consumed and cultivated globally for its sweetness and variety of uses.

Oranges

A citrus fruit known for its vibrant color and sweet, slightly tart flavor, commonly consumed fresh, juiced, or used as flavoring in various dishes.

Borda Count

A voting system where voters rank options or candidates, and each position on the ballot is assigned a certain number of points, with the option receiving the highest total of points winning.

Candidates

Individuals who apply for or are under consideration for a position, role, or opportunity.