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:

Existential Import

The assumption within a proposition that something exists.

Square of Opposition

A diagram representing the logical relationships between certain types of propositions in classical logic.

Universal

Pertaining to or being applicable to all cases, individuals, or groups without exception.

Venn Diagram

A Venn diagram is a graphical representation using overlapping circles to illustrate the logical relationships between two or more sets of items.