Which of the Following Observations Is NOT Consistent with the Cost

question 5

Multiple Choice

Which of the following observations is NOT consistent with the cost method of accounting?

• A)Investee dividends from earnings since acquisition by investor are treated as reduction of investment.
• B)Investments are carried by the investor at historical cost.
• C)Differential is not amortized or written off.
• D)It is consistent with the treatment normally accorded noncurrent assets.

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