Which One of the Following Journal Entries Is Appropriate for an Investor

question 40

Short Answer

Which one of the following journal entries is appropriate for an investor who owns, as a passive investment, equity securities when dividends of $500 have been declared on those equity securities?
a.
$\begin{array}{lrr} \text { Cash } &500\\ \text { Dividends Receivable } &&500\\\end{array}$

b.
$\begin{array}{lrr} \text { Dividends Receivable } &500\\ \text { Short-term Equity Investments} &&500\\\end{array}$

c.
$\begin{array}{lrr} \text { Cash } &500\\ \text { Short-term Equity Investments } &&500\\\end{array}$

d.
$\begin{array}{lrr} \text { Dividends Receivable } &500\\ \text { Dividend Revenue } &&500\\\end{array}$

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Definitions:

Human Brain

The central organ of the human nervous system, responsible for processing sensory information, regulating bodily functions, and enabling consciousness, thoughts, and emotions.

Adulthood

A stage of life characterized by the attainment of legal age and the ability to manage personal and financial responsibilities independently.

Stem Cells

Undifferentiated biological cells that can differentiate into specialized cells and divide to produce more stem cells.

Precursor Cells

Cells that have the potential to differentiate into more specific cell types, often involved in the development of tissues or organs.