When an Investor Is Using the Equity Method and Receives

question 45

Multiple Choice

When an investor is using the equity method and receives dividends from the investee, the journal entry will include a

• A)credit to Dividend Income.
• B)credit to Retained Earnings.
• C)credit to the Investment account.
• D)debit to the Investment account.

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Definitions:

Dust Bowl

Great Plains counties where millions of tons of topsoil were blown away from parched farmland in the 1930s; massive migration of farm families followed.

Soil Erosion

The process by which topsoil is worn away through the action of wind, water, or human activity, leading to reduced land fertility.

Crop Fungus

A type of pathogen that attacks plants, leading to diseases that can severely affect agricultural production and food security.

Civilian Conservation Corps

A public work relief program in the United States for unemployed, unmarried men, part of the New Deal, aimed at conservation and development of natural resources.