Under the Equity Method of Accounting for an Investment

question 28

Multiple Choice

Under the equity method of accounting for an investment

• A) Dividend Revenue is credited when dividends are received.
• B) an Unrealized Gain account is credited when the investee reports net income.
• C) the Investment account is credited when the investee reports net income.
• D) the Investment account is credited when dividends are received.

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Definitions:

Fetus

A developing mammal or human in the uterus from the end of the embryonic stage (about 8 weeks after conception) until birth.

External Stimulation

Involves sensory input from the environment that influences a person's physical or psychological state.

Teratogens

Environmental influences or agents that can damage the embryo or fetus.

Sex Chromosome

A chromosome in the shape of a Y (male) or an X (female) that determines the anatomic sex of the child.