Under the Equity Method of Accounting for Investments in Common

question 24

Multiple Choice

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

• A) the Dividend Revenue account is credited.
• B) the Stock Investments account is increased.
• C) the Stock Investments account is decreased.
• D) no entry is necessary.

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Definitions:

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a clinical method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Female Psychologist

Refers to a psychologist who identifies as female and may contribute to the field with perspectives and research focusing on gender, among other areas of psychology.

Doctorate

The highest academic degree awarded by universities, typically after completion of extensive research in a specific field of study.

Mary Whiton Calkins

An early American psychologist who was the first female president of the American Psychological Association.