When the Cost Method Is Used to Account for an Investment

question 166

True/False

When the cost method is used to account for an investment in stock, dividends received are accounted for as a reduction in the investment account.

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Definitions:

Syntactic

Pertaining to syntax, the arrangement of words and phrases to create well-formed sentences in a language.

Phonological

Phonological pertains to the system of sounds in a language, including the rules of sound combination and pronunciation.

Ambiguity

A situation, statement, or information that is unclear, uncertain, or can be understood in more than one way.

Passive Voice

A grammatical voice that emphasizes the action being done to the subject of the sentence, rather than who is performing the action.