The Equity Method of Accounting for Investments

question 108

Multiple Choice

The equity method of accounting for investments

• A) requires a year-end adjustment to revalue the stock to lower of cost or market
• B) requires the investment to be reported at its original cost
• C) requires the investment be increased by the reported net income of the investee
• D) requires the investment be increased by the dividends paid by the investee

---

Definitions:

Accountability

The obligation of individuals or organizations to account for their activities, accept responsibility for them, and disclose the results in a transparent manner.

House Oversight

A function of the United States House of Representatives that involves monitoring and supervising federal agencies, programs, activities, and policy implementation.

Health Care Laws

Statutes and regulations governing the provision of health care services, insurance, reimbursement, and the responsibilities of health care providers and patients.

Department of Health and Human Services

A federal agency in the United States tasked with protecting the health of all Americans and providing essential human services.