Which of the following is true regarding equity-method investments?
A. Gain or loss on the sale of an equity-method investment is the difference between the sale proceeds and the carrying amount of the investment.
B. The account Equity-method Investment is decreased for the receipt of a dividend on an equity-method investment.
C. both of the above are true.
D. none of the above are true.
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Under the equity method, when an investor company records its share of investee income,
A. the investor company will debit Cash for their share of the income.
B. the following entry is used to record the revenue:
C. uity-Method InvestmentXX
D. uity-Method Investment RevenueXX
E. the entry to record the revenue is:
F. uity-Method Investment RevenueXX
G. uity-Method Investment XX
H. a memo entry is used to record the revenue.
Which of the following is/are eliminated in the preparation of a consolidated balance sheet?
A. Stockholders’ equity of the subsidiary
B. Investment account
C. Intercompany receivables and payables
D. All of the above
You’d better some money for special use.
A. pick up
B. give away
C. put off
D. set aside
His father had thought it would be good for him tofrom home and earn some money on his own.
A. run away
B. take away
C. keep away
D. get away
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