The Following Information Pertains to Questions

question 5

Multiple Choice

The following information pertains to questions
GNR Inc owns 100% of NMX Inc.During the year,NMX Inc earned a net income of $40,000 and paid Dividends of $10,000.
-Assuming that GNR Inc uses the Cost Method,what effect would the above information have on GNR's investment in NMX account?

• A)An increase of $30,000.
• B)An increase of $40,000.
• C)An increase of $10,000
• D)No effect.

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Definitions:

Intrinsic Motivation

The drive to engage in an activity for its own sake and personal rewards, rather than for some separate consequence.

Milgram's Experiment

An experiment focusing on the conflict between obedience to authority and personal conscience.

Representative Sample

A subset of a population carefully chosen to accurately reflect the characteristics of the larger group, ensuring that the results of a study can be generalized.

Descriptive Statistics

Statistical methods used to summarize, show, and analyze data sets to describe their main features often through graphs, tables, and numerical summaries.