Under the Equity Method of Accounting for Investments,dividends Paid by the Investee

question 102

Multiple Choice

Under the equity method of accounting for investments,dividends paid by the investee are recorded by the investor as:

• A) a credit to Dividend Revenue of the investor company
• B) a debit to the Investment account of the investor company
• C) a credit to the Investment account of the investor company
• D) no entry is made to record dividends in this accounting situation

---

Definitions:

Price Fixing

An illegal agreement among competitors to fix prices at a certain level rather than allowing them to be determined by free market forces.

Clayton Act

The Clayton Act is a U.S. antitrust law enacted in 1914, aimed at promoting competition and preventing monopolies.

Antitrust Laws

Legislation enforced to prevent monopolies and promote competition among businesses.

Celler-Kefauver Act

A U.S. law passed in 1950 to beef up antitrust regulations by restricting corporate mergers and acquisitions that could lead to decreased competition.