If a Company Reporting Under ASPE Decides to Use the Cost

question 2

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:

Pay Demand

A request or requirement by employees for increased wages or salaries from their employer.

Expensive

Costing a lot of money; high priced.

Automation

The use of technology and machinery to perform tasks without significant human intervention, aimed at increasing efficiency, accuracy, and productivity.

Computer-controlled Machines

Machines and systems operated or controlled by computer-based algorithms, often used in manufacturing and production processes.