If the Equity Method Is Being Used, Cash Dividends Received

question 108

Multiple Choice

If the equity method is being used, cash dividends received

• A) are credited to the Dividend Revenue account.
• B) require no entry because investee net income has already been recorded at the proper proportion on the investor's books.
• C) are credited to the Stock Investments account.
• D) are credited to the Revenue from Investment in Stock account.

---

Definitions:

Licensees

Individuals or entities that have been granted legal permission to do something that, without permission, would infringe on the rights of the licenser.

Dangerous Conditions

Dangerous conditions refer to environmental or structural situations that pose a risk of injury or harm to individuals.

"But For" Test

A legal standard used to determine causation, asking whether the harm would not have occurred but for the defendant's actions.

Forces

Agencies or influences that cause movement or change, often used in the context of natural phenomena or military strength.