When Applying the Rules of the Equity Method,the Equity Investments

question 139

Multiple Choice

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

• A) the dividend decreases the investor's investment
• B) the dividend is treated as earnings rather than a return of capital
• C) there is a decrease in the dividend liability
• D) the dividend increases the total assets

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Definitions:

Overweight

A condition where an individual has more body weight than is considered healthy for their height, often measured by body mass index (BMI).

85th Percentile

A statistical value where 85 percent of observations fall below this point, often used in growth charts to indicate levels above which might be considered overweight or at risk.

Body Fat

The portion of the human body composed of fat tissue, essential for energy storage, protection of internal organs, and thermal insulation.

Calipers

Measuring instruments used to precisely determine the dimensions of an object or the distance between two points.