Under the Equity Method of Accounting for Investments in Common

question 23

Multiple Choice

Under the equity method of accounting for investments in common shares, when a dividend is received from the investee,

• A)the Dividend Revenue account is credited.
• B)the investment account is increased.
• C)the investment account is decreased.
• D)no entry is necessary.

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Definitions:

Pneumatic Rivet Gun

A tool powered by compressed air used to drive rivets, typically used in metalwork and manufacturing.

FMVSS-121

Refers to the Federal Motor Vehicle Safety Standards regarding air brake systems, specifying design, performance, and maintenance criteria for safe operation.

Stopping Distance

The total distance a vehicle travels from the moment the brakes are applied until it comes to a complete stop, depending on speed, vehicle condition, and road conditions.

Tractor-Trailer

A vehicle comprising a towing engine (tractor) and a trailer, used primarily for transporting goods over long distances.