The Receipt of Dividends from an Investment Affects the Investment

question 99

Multiple Choice

The receipt of dividends from an investment affects the investment account when which of the following methods is used?

• A) cost method
• B) equity method
• C) fair value through profit or loss model
• D) fair value through other comprehensive income model

---

Definitions:

Composition

The act of combining two functions by applying one function to the result of another.

Function

A mathematical relation in which each element of a set of inputs is associated with exactly one element of a set of outputs.

Inverse Function

A function that reverses the operation of a given function, so that if the original function applied to an input gives a certain output, the inverse function applied to that output returns the original input.

Function

A relation between a set of inputs and a set of permissible outputs, where each input is related to exactly one output.