Which of the Following Results in a Decrease in the Equity

question 67

Multiple Choice

Which of the following results in a decrease in the Equity in Investee Income account when applying the equity method?

• A) Dividends paid by the investor.
• B) Net income of the investee.
• C) Unrealized gain on intra-entity inventory transfers for the current year.
• D) Unrealized gain on intra-entity inventory transfers for the prior year.
• E) Extraordinary gain of the investee.

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Definitions:

Personal Selling

A sales method involving direct face-to-face interaction between a salesperson and a prospective buyer to persuade the buyer to make a purchase.

Coffeemaker

A kitchen appliance used for brewing coffee by automatically heating water and directing it over ground coffee beans.

Intangible Activities

Tasks or operations that do not result in a physical product but provide value or service to customers.

Market Research

Market research is the process of gathering, analyzing, and interpreting information about a market, including info about the target market, competitors, and customers, to inform business decisions.