When Applying the Rules of the Equity Method,the Long-Term Investments

question 3

Multiple Choice

When applying the rules of the equity method,the Long-term Investments account is credited for the receipt of a cash dividend because ________.

• A)the dividend decreases the investor's investment
• B)it increases the investor's investment
• C)there is an increase in dividend liability
• D)the dividend increases the total assets

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Definitions:

Ego Support

Psychological support or reinforcement which strengthens an individual's sense of self-esteem or self-importance.

Gottman

John Gottman is a professor emeritus in psychology known for his work on marital stability and relationship analysis through scientific direct observations.

Social Comparison

The process by which individuals evaluate their own abilities, achievements, and conditions in relation to others, often to assess self-worth or social status.

Providing Information

The act of supplying facts, data, or knowledge to someone.