Which of the Following Results in an Increase in the Investment

question 108

Multiple Choice

Which of the following results in an increase in the investment account when applying the equity method?

• A) Unrealized gain on intra-entity inventory transfers for the prior year.
• B) Unrealized gain on intra-entity inventory transfers for the current year.
• C) Dividends paid by the investor.
• D) Dividends paid by the investee.
• E) Sale of a portion of the investment during the current year.

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Definitions:

Biological Membrane

A lipid bilayer structure that encloses the cellular contents of living cells and regulates the passage of substances in and out of cells.

Trans Membrane

Pertaining to or spanning across a cellular membrane, often referring to proteins that extend through the bilayer and interact with both the inside and outside of a cell.

Fluid Mosaic Model

The currently accepted model of the plasma membrane and other cell membranes, in which protein molecules “float” in a fluid phospholipid bilayer.

Lipid Bilayer

The lipid bilayer is a fundamental structure forming cell membranes, composed of two layers of phospholipids, which serves as a barrier to protect cellular contents.