The Receipt of Dividends from an Investment Affects the Investment

question 3

Multiple Choice

The receipt of dividends from an investment affects the investment account when which of the following methods is used?

• A)Cost method.
• B)Equity method.
• C)Fair value model.
• D)Fair value through other comprehensive income model.

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Definitions:

Cost Of Goods

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor.

Master Budget

An all-encompassing financial planning document that consists of various individual budgets, which detail a company's financial goals, strategies, and operational plans.

Finished Goods

These are products that have completed the manufacturing process and are ready to be sold to customers.

Finished Goods

Items that have finished being manufactured and are prepared for purchase.