What Is Included in the Journal Entry Required to Record

question 47

Multiple Choice

What is included in the journal entry required to record the receipt of dividends under the fair value method of accounting for investments?

• A) credit to the investment account
• B) debit to the dividend account
• C) credit to dividend income
• D) debit to retained earnings

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Definitions:

Nondurable Goods

Products with a limited lifespan, intended for consumption or use over a short period, such as food or paper products.

Tangible Attributes

Physical features or characteristics of a product that can be directly perceived by the senses, such as size, shape, color, or weight.

Intangible Attributes

Characteristics of a product or service that cannot be physically touched or seen, such as the brand reputation or the level of customer service.

Nondurable Good

Products that are consumed or are only usable for a short period of time, such as food, paper products, and fuel.