Which of the Following Is Not True When the Fair

question 140

Multiple Choice

Which of the following is not true when the fair value option is elected for an investment that would normally be accounted for under the equity method?

• A)No journal entry need be made to recognize the investor's portion of the investee's net income.
• B)Unrealized gains and losses on that investment are recognized in net income.
• C)No journal entry need be made to recognize the investor's portion of dividends paid by the investee.
• D)All of these answer choices are true.

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Definitions:

Coefficient of Determination

A statistical measure that determines the proportion of the variance in the dependent variable that can be predicted from the independent variable(s).

Multiple Regression

An approach in statistics that leverages various independent variables to estimate the outcome of a target variable.

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The average number of years an individual or demographic is expected to live, based on statistical analysis of various factors like health, lifestyle, and geographical location.

Error Variable

A variable in statistical models that captures the difference between observed and predicted values, often due to randomness or unexplained variation.