Under the Equity Method of Accounting for Long-Term Investments in Common

question 120

Multiple Choice

Under the equity method of accounting for long-term investments in common stock,when a cash dividend is received from the investee company:

• A)the investor's Equity-Method Investment account is increased.
• B)the Dividend Revenue account is increased.
• C)the investor's Equity-Method Investment account is decreased.
• D)no entry is necessary.

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Definitions:

Electrical Engineer

A professional who designs, develops, and tests electrical equipment and systems, including electric motors, machinery controls, and power generation equipment.

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