When an Investment Accounted for Under the Equity Method Is

question 82

True/False

When an investment accounted for under the equity method is sold,the gain or loss reported on the income statement is the difference between the selling price and the original cost of the investment.

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Definitions:

Reinforcement

A concept in behaviorism that increases the likelihood of a behavior being repeated through positive or negative stimuli.

Learned Reflexive Response

A behavior that is developed over time through conditioning, in which a stimulus automatically elicits a response.

Conditioning

A method of altering behavior in which an individual learns to connect a new behavior with a stimulus that was previously not related to it.

Psychodynamic Perspective

Modern version of psychoanalysis that is more focused on the development of a sense of self and the discovery of motivations behind a person’s behavior other than sexual motivations.