The Long-Term Investments Account Is Credited for the Receipt of a Cash

question 100

Multiple Choice

The Long-term Investments account is credited for the receipt of a cash dividend on an equity-method investment because:

• A)the dividend decreases the investee's equity.
• B)it increases the investor's investment.
• C)there is an increase in dividend liability.
• D)the dividend increases the total assets.

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Definitions:

Counter Evidence

Information or data that contradicts or disproves previously held beliefs or conclusions.

Constructive Conflict

Disagreement that leads to productive discussions, problem-solving, and improvement rather than destructive outcomes.

Tendency

A predisposition or inclination towards a particular pattern of thought, behavior, or action.

Avoid

Refers to deliberately staying away from or preventing something from happening.