Under the Equity Method of Accounting for Long-Term Investments in Common

question 43

Multiple Choice

Under the equity method of accounting for long-term investments in common stock when a dividend is received from the investee company

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

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Definitions:

Orderly Environment

A state of methodical arrangement or organization, typically referring to physical spaces or social structures that are managed to promote efficiency and calm.

Educational Attainment

The highest level of education an individual has completed, often used as an indicator of skill level, social status, and economic potential.

Years of School

Refers to the total number of years an individual has spent receiving formal education, typically from primary through secondary and possibly post-secondary education.

Completion

The act of finishing or bringing something to an end, often marked by achieving a goal or fulfilling a requirement.