When a Corporation Owns Less Than 20% of the Stock

question 88

True/False

When a corporation owns less than 20% of the stock of another company, dividends received are not treated as income.

---

Definitions:

Debit Side

The left side of an account in double-entry bookkeeping that records increases in assets, expenses, and decreases in liabilities, equity, and income.

Accounts Receivable

The amount that customers are required to pay a business for the goods or services they have received but have not yet paid for.

Services

Economic activities that provide intangible benefits or satisfactions, not resulting in the ownership of a physical product.

Cash

Liquid currency and other assets that are readily convertible into money.