Which of the Following Results in an Increase in the Investment

question 108

Multiple Choice

Which of the following results in an increase in the investment account when applying the equity method?

• A) Unrealized gain on intra-entity inventory transfers for the prior year.
• B) Unrealized gain on intra-entity inventory transfers for the current year.
• C) Dividends paid by the investor.
• D) Dividends paid by the investee.
• E) Sale of a portion of the investment during the current year.

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Definitions:

Inevitable

A situation or event that is certain to happen and cannot be avoided or prevented.

Organizational Unit

A specific department, division, or group within an organization, often defined by function or role.

Leader Behavior

Refers to the actions and conduct exhibited by a leader, influencing the group or organization's performance and culture.

Path-goal Theory

A leadership theory that suggests the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure their goals are compatible with the organization's.