Thivan Ltd $$\begin{array} { | l | c | } \hline \text { DR Cash } & 100,000 \\\hline \text { CR Investment in Thivan } & 100,000 \\\hline\end{array}$$

question 30

Multiple Choice

Thivan Ltd. is a wholly-owned subsidiary of Bateman Co. Thivan has declared dividends of $100,000.
- Bateman uses the equity method to record this investment and has properly reflected Thivan's dividend declaration on its books. What journal entry should Bateman make when it receives the dividends?

• A) \[\begin{array} { | l | c | }
• \hline \text { DR Cash } & 100,000 \\
• \hline \text { CR Investment in Thivan } & 100,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { |l | c | }
• \hline \text { DR Cash } & 100,000 \\
• \hline \text { CR Dividend revenue } & 100,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | c | }
• \hline \text { DR Cash } & 100,000 \\
• \hline \text { CR Dividends receivable } & 100,000 \\
• \hline
• \end{array}\]
• D)No entry is required as the journal entry for dividends declared was already received.

Apply the high-low method to analyze variable and fixed cost elements from given data.

Evaluate the impact of changes in cost structure and sales volume on a company's profit.

Analyze the financial implications of different operational decisions, such as pricing adjustments and cost reduction efforts.

Determine appropriate pricing strategies to enhance profitability.

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