Under the Equity Method of Accounting for Investments in Common

question 19

Multiple Choice

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

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

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Definitions:

Latency

A period of time during which a process or condition exists or continues without manifesting significant signs or symptoms of its presence or any forthcoming changes.

Cognitive Development

The process by which an individual's ability to think, understand, and learn evolves over the course of their life.

Mental Disorders

Health conditions involving significant changes in emotion, thinking, or behavior, often associated with distress or problems functioning in social, work, or family activities.

Preschool Education

Educational programs and activities designed for young children, typically ages 3-5, to prepare them for school by developing basic skills and knowledge.