Revenue Is Recognized When Cash Dividends Are Received Under

question 49

Multiple Choice

Revenue is recognized when cash dividends are received under

• A) the controlling interest method.
• B) the cost method.
• C) the equity method.
• D) both the cost and equity methods.

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Definitions:

Debts And Obligations

Financial commitments or responsibilities, such as loans and promissory notes, that an entity is required to pay to others.

Future Economic Benefits

The capability to assist in the direct or indirect increase of cash and cash equivalents for an organization.

Economic Entity Assumption

An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.