Under the Equity Method of Accounting for Investments in Common

question 24

Multiple Choice

Under the equity method of accounting for investments in common stock, when a dividend is received from the investee company

• A) the Dividend Revenue account is credited.
• B) the Stock Investments account is increased.
• C) the Stock Investments account is decreased.
• D) no entry is necessary.

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Definitions:

Punctuation

The use of symbols in writing that separate sentences and their elements, clarifying meaning.

Apostrophe

A punctuation mark used to indicate possession or the omission of letters.

Possessive Noun

A noun that shows ownership or association with something else, typically formed by adding an apostrophe and the letter 's' to the word.

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Numerical values used to represent quantities or amounts.