If a Company Reporting Under ASPE Decides to Use the Cost

question 88

Multiple Choice

If a company reporting under ASPE decides to use the cost model to account for an investment in common shares, dividends received should be

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

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Definitions:

Production

The activities and processes used in making tangible products; also called manufacturing.

Financial Advisor

A professional who provides expert advice on personal financial matters, including investments, insurance, mortgages, college savings, estate planning, taxes, and retirement, depending on what the client requests.