Under the Equity Method, Cash Dividends Received by the Investor

question 55

Multiple Choice

Under the equity method, cash dividends received by the investor from the investee should be treated as ________.

• A) an adjustment to other comprehensive income
• B) a reduction in the investment account
• C) an increase in the investment account
• D) dividend income

---

Definitions:

Seasonal Affective Disorder

A type of depression that occurs at a specific time of year, usually in the winter, when there is less natural sunlight.

Depression

A common and serious mood disorder that causes persistent feelings of sadness and loss of interest.

Winter

The coldest season of the year in polar and temperate climates, characterized by short days, long nights, and typically featuring snow, ice, and freezing temperatures.

Biological Clock

An internal mechanism in organisms that controls the cycle of biological processes and behaviors in a roughly 24-hour cycle, known as the circadian rhythm.