A Company Has Been Using the Equity Method to Account

question 94

Multiple Choice

A company has been using the equity method to account for its investment. The company sells shares and does not continue to have significant control. Which of the following statements is true?

• A) A cumulative effect change in accounting principle must occur.
• B) A prospective change in accounting principle must occur.
• C) A retrospective change in accounting principle must occur.
• D) The investor will not receive future dividends from the investee.
• E) Future dividends will continue to reduce the investment account.

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Definitions:

Sales Goals

Specific objectives set for a sales team or individual salesperson to achieve within a certain timeframe.

Empowering Leadership

A behavioral type of leadership that empowers leaders to help develop the individual skills and abilities of their followers. Also known as “SuperLeadership”.

Superleadership

A leadership style focused on developing the self-leadership abilities of others, encouraging individuals to take responsibility for leading themselves.

Empowering Leadership

A leadership approach that aims to give employees autonomy, resources, and information to make decisions and solve problems independently.