Zach Company Owns 45% of the Voting Stock of Tomas

question 120

Multiple Choice

Zach Company owns 45% 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 Company's entry would include a

• A) Credit to cash for $9,000
• B) Debit to the investment account for $9,000
• C) Credit to the investment account for $9,000
• D) Credit to a loss account for $9,000

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Definitions:

Operant Conditioning

A learning process in which the strength of a behavior is modified by reinforcement or punishment.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any prior learning.

Metronome

A mechanical or electronic device used to keep a steady tempo by producing a regulated sound, aiding musicians in maintaining a consistent pace in their performance.

Unconditioned Reflexes

Automatic or natural responses to a stimulus that occur without prior learning or conditioning.