Receipt of Dividends from the Investee Company Affects the Investor

question 52

Multiple Choice

Receipt of dividends from the investee company affects the investor company's long-term investment account under which method?

• A)Equity method
• B)Cost method
• C)Fair value method
• D)Purchase method

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Definitions:

Subleases

Secondary leases whereby the original tenant rents out their rental property to a new tenant, transferring some or all of their tenancy rights to the subtenant.

Liable

Legally responsible or obligated to provide compensation for causing loss or damage through negligent or wrongful acts.

Irrevocable Right

A legal entitlement or authority that cannot be revoked, altered, or undone once it has been granted or established.

License

A revocable right to use another’s property temporarily.