Under the Equity Method of Accounting for Investments in Common

question 21

Multiple Choice

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

• A)the Dividend Income account is credited.
• B)the Investment account is increased.
• C)the Investment account is decreased.
• D)no entry is necessary.

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Definitions:

Dependent Variables

In an experimental setting, these are the variables that are tested and measured to see how they are influenced by changes in independent variables.

Control Group

In experimental research, the group of subjects not exposed to the treatment, used as a baseline to compare with the treatment group.

Caffeine

A stimulant drug found in coffee, tea, and certain soft drinks, known to increase alertness.

Reaction Time

The interval between the presentation of a stimulus and the initiation of the response to that stimulus.