Which of the Following Is Incorrect? an Analyst Should Be

question 54

Multiple Choice

Which of the following is incorrect? An analyst should be aware of the following when analyzing a company that has significant investments recorded using the equity method.

• A)Cash flow received from investee may be substantially different from investment income recorded.
• B)As investee's liabilities are not recorded on the company's balance sheet, there may be significant off-balance-sheet financing.
• C)They must mark investment in investee to market even though there may be no ready market in which they can sell their investment.
• D)Company must record pro rata share of investee's earnings, which may not be well correlated with changes in market value of investee.

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Definitions:

Alcohol-Based

Refers to products, particularly sanitizers or disinfectants, that contain a significant percentage of alcohol to kill bacteria and viruses.

Washing Hands

The act of cleaning one's hands with soap and water or an alcohol-based hand rub to reduce the spread of germs and prevent infections; a rephrased definition of Hand Hygiene.

Contact Isolation

Infection control measures designed to prevent the spread of diseases that can be transmitted through direct or indirect contact with an infected individual.

Personal Protective

Equipment worn to minimize exposure to hazards that cause serious workplace injuries and illnesses, such as gloves, goggles, and face shields.