Which of the Following Increases the Investment Account Under the Equity

question 40

Multiple Choice

Which of the following increases the investment account under the equity method of accounting?

• A) Decreases in the market price of the investee's stock.
• B) Dividends paid by the investee that were declared in the previous year.
• C) Net loss of the investee company.
• D) None of these answer choices are correct.

---

Definitions:

Initial Value

The beginning amount or worth of an object, financial asset, or parameter before it undergoes any changes.

Final Value

An alternative term for future value,indicating the amount of money an investment will grow to at a future date, based on specified conditions.

Airfares

The cost of a passenger flight ticket.

Winnipeg

A city in Canada, known as the capital of the province of Manitoba, with a diverse economy and cultural scene.