If an Investor Company Owns Between 20% and 50% of the Common

question 11

Multiple Choice

If an investor company owns between 20% and 50% of the common shares of another business, cash dividends received from the investee company are generally recorded by the investor company by:

• A) increasing the value of the investor's Investment account
• B) decreasing the investor company's Common Shares account
• C) increasing the Dividend Revenue account
• D) decreasing the value of the investor's Investment account

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Definitions:

Arbitrations

Arbitrations are a form of alternative dispute resolution where a neutral third party, the arbitrator, makes a decision to resolve a dispute outside of court.

Court Trial

A formal judicial proceeding where evidence is presented and disputed issues are resolved before a judge or jury.

Similarities

The state of being alike or having common features.

Litigation

Engaging in dispute resolution or pursuing legal matters by utilizing the court system.