An auditors analytical procedures indicate a lower than expected return on an equity method investment. This situation

Question:

An auditor’s analytical procedures indicate a lower than on an equity method investment. This situation most likely could have been caused by
a. An error in recording amortization of the excess of the investor’s cost over the invest-ment’s underlying book value.
b. The investee’s decision to reduce cash dividends declared per share of its .
c. An error in recording the unrealized gain from an increase in the fair value of available-for sale securities in the income account for trading securities.
d. A substantial fluctuation in the price of the investee’s on a national stock exchange.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...