If the Cost Method Is Used to Account for a Long-Term

question 74

Multiple Choice

If the cost method is used to account for a long-term investment in ordinary shares, dividends received should be

• A) credited to the Share Investments account.
• B) credited to the Dividend Revenue account.
• C) debited to the Share Investments account.
• D) recorded only when 20% or more of the shares are owned.

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Definitions:

Lobbying

The activity of influencing legislators, officials, or other decision-makers on specific legislative or policy issues.

Alienating Donors

Actions or strategies that inadvertently drive away potential or existing contributors by making them feel unvalued, ignored, or opposed to the organization's practices.

Direct Services

Programs or activities provided by an organization that offer immediate assistance to individuals or communities, such as healthcare, education, or emergency relief.

Advocacy

The act of publicly supporting or recommending a particular cause or policy, often by groups or individuals to influence public opinion or policy decisions.