Zach Company Owns 40% of the Voting Stock of Tomas

question 24

Multiple Choice

Zach Company owns 40% of the voting stock of Tomas Corporation and uses the equity method in recording this investment. Tomas Corporation reported a $20,000 net loss. Zach Corporation's entry would include a

• A) Credit to cash for $8,000
• B) Debit to the investment account for $8,000
• C) Credit to the investment account for $8,000
• D) Debit to a loss account for $8,000

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Definitions:

Play Face

An expressive facial gesture typically shown during play, indicating joy, engagement, and a non-threatening demeanor.

Rough-And-Tumble Play

A form of play that involves physical activities such as running, chasing, and play-fighting, commonly observed in children and considered important for development.

Social Hierarchy

The organization of individuals within a society based on various factors like status, wealth, or occupation, which defines their ranking or position.

Play Face

An expression typically observed in primates, including humans, indicating a readiness to engage in playful interactions.