The correct question is:
An investee company incurs an extraordinary loss during the period. The investor appropriately applies the equity method. Which of the following statements is true?
A. Under the equity method, the investor only recognizes its share of investee's income from continuing operations.
B. The loss would be ignored but shown in the investor's notes to the financial statements.
C. The extraordinary loss should increase equity in investee income.
D. The extraordinary loss would not appear on the income statement but would be a component of comprehensive income.
E. The extraordinary loss would reduce the value of the investment.
Answer:
The extraordinary loss would reduce the value of the investment.
Explanation:
An extraordinary loss occurs because of an activity that does not frequently occur and is usually one-off. Outside usual activities of the business.
It is not expected to reoccur, and is reported in the income statement below income.
For example loss of stock of goods to fire outbreak, flood, or earthquake.
The value of investment is negatively impacted by extraordinary loss. It reduces Earnings per Share (EPS).
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Answer:
A). EA (Early Adopters)
Explanation:
There are basically five categories of adopters namely (in no particular order):
Early adopters (EA);
Late majority(LM);
Early majority (EM);
Innovators (I);
Laggards (L).
The early adopters can be said to be trend setters. Their opinions are taken by others as they are quite young and have enough social contacts. They tend to adopt to new technologies easily, but not as apt as the innovators. The early adopters tend to show off their choice of fashion and trends and even suggest to others to buy similar products.
All the characteristics of Brandon listed in this case falls in the early adopters perfectly. Therefore we can say that brandon is an early adopter(EA).
Option A is correct.
PPP is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.
<h3 /><h3>What is purchasing power parity?</h3>
Purchasing power parity (PPP) is a method of comparing the absolute purchasing power of currencies and, to some extent, the living standards of people in different countries.
It uses the prices of specific goods to compare the absolute purchasing power of currencies and, to some extent, the living standards of their people.
Therefore the above statement explains the purchasing power parity.
Learn more about purchasing power parity here:
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