When an Investor Uses the Equity Method to Account for Investments

question 49

Multiple Choice

When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as

• A) An increase in the investment account
• B) A deduction from the investment account
• C) Dividend revenue
• D) A deduction from the investor's share of the investee's profits

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Definitions:

Disordered Aggression

Aggressive behavior that is abnormal, uncontrolled, and potentially harmful, often resulting from psychological disorders or brain injury.

Cultures

The shared values, beliefs, norms, and practices of a group of people that are passed down from generation to generation.

Psychological Disorders

Mental health conditions characterized by disruptive patterns of thoughts, feelings, or behaviors, which cause distress or impair function in daily life.

Particular Cultures

Specific groups of people who share a set of traditions, beliefs, languages, and lifestyles, distinguishing them from other groups.