If an Investor Company Owns Between 20% and 50% of the Common

question 101

Multiple Choice

If an investor company owns between 20% and 50% of the common stock of another business, cash dividends received from the investee company are generally recorded by the investor company by:

• A)decreasing the investor company's Common Stock account.
• B)increasing the value of the investor's Investment account.
• C)increasing the Dividend Revenue account.
• D)decreasing the value of the investor's Investment account.

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