If the Equity Method Is Being Used the Revenue from Stock

question 100

Multiple Choice

If the equity method is being used the Revenue from Stock Investments account is

• A) just another name for a Dividend Revenue account.
• B) credited when dividends are declared by the investee.
• C) credited when net income is reported by the investee.
• D) debited when dividends are declared by the investee.

---

Definitions:

Economies of Scale

The cost advantage that arises with increased output of a product, where the average cost per unit decreases as the scale of production expands.

Technological Advance

Progress in technology that improves efficiency and productivity, often leading to economic growth.

Labor Productivity

A measurement of economic performance that shows the amount of goods and services produced per labor hour.

Average Total Cost

The total cost of production divided by the total quantity produced, representing the average cost per unit.