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:

Pragmatics

A subfield of linguistics dedicated to studying how language operates in social environments and how people convey and interpret meanings using language.

Mapping

The process of creating a visual representation of a particular area or concept.

Comprehension

The ability to understand and make sense of text, speech, or any form of communication.

Dynamics

The forces or properties that stimulate growth, development, or change within a system or process.