An Investor Who Is Using the Equity Method Records Dividends

question 115

Multiple Choice

An investor who is using the equity method records dividends declared by the associate by

• A)crediting the loss from associates account.
• B)crediting the income from associates account.
• C)crediting the dividend income account.
• D)crediting the investment in associates account.

---

Definitions:

Damages

Compensation claimed by or ordered to be paid to a party for loss or injury as a result of breach of contract, negligence, or other wrongful act.

Criminal Injuries

Criminal injuries refer to physical or psychological harm suffered as a direct result of a criminal act.

Civil Injuries

Acts that cause harm or damage to another person in private matters, leading to civil litigation.

Respondeat Superior

A legal doctrine that holds employers legally responsible for the actions of their employees performed in the course of employment.