Use the Following Information to Calculate Cash Received from Dividends

question 120

Multiple Choice

Use the following information to calculate cash received from dividends: $\begin{array}{|l|r|}\hline \text { Dividends revenue } & \$ 29,800 \\\hline \text { Dividends receivable, January 1 } & 2,600 \\\hline \text { Dividends receivable, December } 31 & 3,400 \\\hline\end{array}$

• A)$26,400
• B)$29,000
• C)$29,800
• D)$30,600
• E)$32,400

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Definitions:

Rationale

The underlying reason or logic behind a decision, practice, or theory.

Parent Entities

Companies that own enough voting stock in another company to control management and operations by influencing or electing its board of directors.

Consolidated Financial Statements

Financial reports that aggregate the financials of a parent company and its subsidiaries into one comprehensive document.

Equity Method

An accounting technique used to assess investments in which the investor has significant influence over the investee but does not exert full control.