Thivan Ltd B) C) D)No Entry Is Required Until the Dividends Are Paid

question 21

Multiple Choice

Thivan Ltd. is a wholly-owned subsidiary of Bateman Co. Thivan has declared dividends of $100,000.
- Under the equity method, what entry should Bateman record on its books?

• A) \[\begin{array} { | c | c | }
• \hline \text { DR Investment in Thivan } & 100,000 \\
• \hline \text { CR Dividend income } & 100,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | c | }
• \hline \text { DR Investment in Thivan } & 100,000 \\
• \hline \text { CR Equity in earnings of Thivan } & 100,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | c | }
• \hline \text { DR Dividends receivable } & 100,000 \\
• \hline \text { CR Investment in Thivan } & 100,000 \\
• \hline
• \end{array}\]
• D)No entry is required until the dividends are paid.

Understand how personal constructs are formed, tested, and modified.

Recognize the significance of construct dichotomy and construct revision in personal growth.

Grasp the importance of understanding other people’s construct systems in interpersonal relations.

Understand Kelly's basic postulates and their implications for human motivation and behavior.

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Definitions:

Equilibrium

In economics, a state where market supply and demand balance each other, and as a result, prices become stable.

Coconuts

Tropical fruits or the hard-shelled seeds of the coconut palm, often used metaphorically in economics and game theory to represent tradable resources.

Civic Authorities

Government officials or bodies responsible for governing a city or town, and managing local services and regulations.

Long-run Supply Function

An economic concept that describes the total quantity of products that firms are willing to supply over a long period, taking into account the adjustments in production factors and technology.