When the Cost Method of Accounting for Long-Term Investment in Shares

question 8

Multiple Choice

When the cost method of accounting for long-term investment in shares is employed, the receipt of a dividend on those shares is recorded as a credit to:

• A) the investment asset.
• B) dividend revenue.
• C) retained profits.
• D) None of the above.

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Definitions:

J.Strom Thurmond

A long-serving U.S. senator known for his strong support of racial segregation and opposition to civil rights legislation.

Taft-Hartley Act

A 1947 United States federal law that restricts the activities and power of labor unions.

AFL

refers to the American Federation of Labor, a national federation of labor unions in the United States, founded in 1886, focusing on skilled workers.

CIO

Congress of Industrial Organizations, a federation of unions that organized workers in industrial unions in the United States and Canada from 1935 until its merger with the AFL in 1955.