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.

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Definitions:

Scientific Method

A systematic approach to research and experimentation characterized by observation, hypothesis formulation, experimentation, and conclusions.

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The act of carefully watching, tracking, or analyzing an occurrence, event, or thing to gather data and draw conclusions.

Scientific Method

A systematic and logical approach to discovering how things in the universe work, involving observation, hypothesis formulation, experimentation, and conclusion.

Case Studies

In-depth analyses of a single event, situation, or individual to explore and understand underlying principles or phenomena.