Under the Equity Method,dividend Revenue Is Treated as ________

question 81

Multiple Choice

Under the equity method,dividend revenue is treated as ________.

• A) a debit to revenue from investments
• B) dividend revenue
• C) a return of capital
• D) a credit to current assets

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Definitions:

Capital Goods

Assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.

Investment

Expenditures that increase the volume of physical capital (roads, factories, wireless networks) and intangible ideas (formulas, processes, algorithms) that help to produce goods and services. Also known as economic investment. Not to be confused with financial investment.

Marginal Analysis

The comparison of marginal (“extra” or “additional”) benefits and marginal costs, usually for decision making.

Extra Benefits

Additional advantages or services provided beyond the standard or expected, often included in employment contracts, insurance policies, or membership programs.