If the Equity Method Is Being Used the Revenue from Stock

question 100

Multiple Choice

If the equity method is being used the Revenue from Stock Investments account is

• A) just another name for a Dividend Revenue account.
• B) credited when dividends are declared by the investee.
• C) credited when net income is reported by the investee.
• D) debited when dividends are declared by the investee.

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Definitions:

Alliances

Cooperative agreements that allow firms to remain independent, but cooperatively pursue strategies consistent with their individual missions.

Bill of Material

A comprehensive list of raw materials, components, and instructions required to construct, manufacture, or repair a product or service.

Assembly Drawing

A detailed diagram that shows the parts of an object and how they fit together to form the final product.

Engineering Drawing

A drawing that shows the dimensions, tolerances, materials, and finishes of a component.