When the Equity Method Is Used to Account for a Long-Term

question 109

Multiple Choice

When the equity method is used to account for a long-term investment in stock of another company,the carrying value of the investment is affected by

• A) declines in the market value of the stock.
• B) the earnings and dividends of the investee.
• C) an excess of market price over cost.
• D) neither the earnings nor the dividends of the investee.

Understand barriers to behavior change and strategies to overcome them.

Appreciate the role of trust and relationship-building in health education.

Identify factors that determine the effectiveness of health education programs.

Understand the components and applications of the Health Belief Model (HBM) and Health Promotion Model (HPM).

---

Definitions:

Consolidation Adjustments

Journal entries made to eliminate the effects of intercompany transactions when preparing consolidated financial statements.

Temporary Differences

These are differences between the book value of assets and liabilities and their tax values that will result in taxable or deductible amounts in the future.

Depreciable Assets

Long-term assets subject to a reduction in value over time due to usage, wear and tear, or obsolescence.

Deferred Tax Assets

Future tax benefits arising from deductible temporary differences and the carryforward of unused tax credits and losses.