If an Investment Is Accounted for by Using the Equity

question 100

Multiple Choice

If an investment is accounted for by using the equity method, a cash dividend received on the investment will:

• A) Decrease the investment account and have no effect on the investment revenue account.
• B) Increase the investment account and the investment revenue account.
• C) Decrease the investment account and increase the investment revenue account.
• D) Have no effect on the investment account or on the investment revenue account.

---

Definitions:

Life Chances

A social science concept that refers to the opportunities each individual has to improve their quality of life, often influenced by social and economic factors.

Educational Opportunities

refer to the accessibility and availability of learning experiences and resources that can improve knowledge, skills, and qualifications.

Working-Class Family

A family where the primary earners are employed in blue-collar jobs or manual labor, often associated with lower income levels.

Culture of Poverty

A theory suggesting that poverty creates a distinct set of values, behaviors, and attitudes that perpetuate poverty across generations.