When Using the Equity Method to Account for an Investment

question 94

Multiple Choice

When using the equity method to account for an investment, cash dividends received by the investor from the investee should be recorded:

• A) As a reduction in the investment account.
• B) As an increase in the investment account.
• C) As dividend income.
• D) As a contra item to stockholders' equity.

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Definitions:

Geons

Simple geometric figures, such as cubes, cylinders, and pyramids, that can be combined to create all other shapes. An early (and crucial) step in some models of object recognition is determining which geons are present.

Top-down Processing

A cognitive process where understanding of information starts with the broader context or knowledge before incorporating details.

Bottom-up Processing

A type of information processing based on incoming data from the environment to form a perception, starting from the details and moving up to the whole.

Geon

Basic geometric ions considered as the fundamental building blocks for visual object recognition according to the recognition-by-components theory.