If the Cost Method Is Used to Account for a Long-Term

question 149

Multiple Choice

If the cost method is used to account for a long-term investment in common stock dividends received should be

• A) credited to the Stock Investments account.
• B) credited to the Dividend Revenue account.
• C) debited to the Stock Investments account.
• D) recorded only when 20% or more of the stock is owned.

---

Definitions:

Federal Troops

Military forces deployed by the federal government of a nation, often used to denote soldiers sent to enforce laws within the country, including during periods of civil unrest.

Using Force

The application of physical power or violence to achieve an objective, often associated with military action or law enforcement tactics.

Plessy V. Ferguson

U.S. Supreme Court decision supporting the legality of Jim Crow laws that permitted or required “separate but equal” facilities for blacks and whites.