If the Cost Method Is Used to Account for a Long-Term

question 74

Multiple Choice

If the cost method is used to account for a long-term investment in ordinary shares, dividends received should be

• A) credited to the Share Investments account.
• B) credited to the Dividend Revenue account.
• C) debited to the Share Investments account.
• D) recorded only when 20% or more of the shares are owned.

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