If the Cost Method Is Used to Account for an Investment

question 88

Multiple Choice

If the cost method is used to account for an investment in common stock, dividends received should be

• A) credited to the Stock Investments account.
• B) credited to the Dividend Revenue account.
• C) debited to the Stock Investments account.
• D) recorded only when 20% or more of the stock is owned.

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Definitions:

Clavicle

The collar bone, articulating with the sternum and scapula.

Subluxation

The partial dislocation or misalignment of a joint or organ.

Articulating Surfaces

The contact regions between bones that move against each other in a joint, usually covered with articular cartilage.

Dislocation

An injury where the ends of bones are forced from their normal positions in the joint, causing pain and dysfunction.