When Applying the Rules of the Equity Method,the Equity Investments

question 139

Multiple Choice

When applying the rules of the equity method,the Equity Investments account is credited for the receipt of a cash dividend because ________.

• A) the dividend decreases the investor's investment
• B) the dividend is treated as earnings rather than a return of capital
• C) there is a decrease in the dividend liability
• D) the dividend increases the total assets

---

Definitions:

Service Blueprinting

A tool used in service design to visualize the service process, points of customer contact, and the physical evidence of a service from a customer's perspective.

Provider's Interaction

The engagement and communication between a service provider and their clients or customers, often critical to service delivery and satisfaction.

Customer

An individual or organization that purchases goods or services from a business.