The Journal Entry to Record the Receipt of a Stock

question 50

Multiple Choice

The journal entry to record the receipt of a stock dividend arising from an available-for-sale investment held by a company includes:

• A)a debit to Unrealized Gain on Investment and a credit to Dividend Revenue.
• B)a debit to Cash and a credit to Dividend Revenue.
• C)a debit to Cash and a credit to Unrealized Gain on Investments.
• D)no journal entry. Only a memorandum entry is required.

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Definitions:

Ecological Economists

Experts who study the relationship between ecological systems and economic systems, often focusing on sustainability and environmental impacts of economic decisions.

Environmental Economists

Experts who study the economic impacts of environmental policies and the cost-benefit analyses of preserving or degrading the environment.

Neoclassical Economics

An economic theory that focuses on supply, demand, and the price mechanism as the driving forces behind production, distribution, and consumption of goods and services.

Economic Systems

Organized ways in which countries manage their resources and distribute goods and services within their societies.