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Under the Equity Method, the Dividend Revenue from a Long-Term

question 25

Multiple Choice

Under the equity method, the dividend revenue from a long-term investment-which has an ownership of 20% to 50%-the dividend is treated as a:

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Definitions:

Merchandise Account

An account used to track the buying and selling of goods for resale in the normal course of business.

Perpetual Inventory Method

An inventory tracking system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Accounts Payable

Liabilities of a business that represent money owed to suppliers for purchases made on credit.

Merchandise Inventory

Goods or stock held by a business for the purpose of resale to customers.

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