The Entry to Record a Stock Dividend Received on a Short-Term

question 44

Multiple Choice

The entry to record a stock dividend received on a short-term investment involves:

• A) a debit to Cash
• B) a credit to Dividend Revenue
• C) a debit to the Marketable Securities account
• D) no adjusting entry

---

Definitions:

Intangible Assets

Assets that have value to a business but are not visible.

Long-Term Equity

Investments in stocks or other equity instruments that are intended to be held for a period longer than one year for potential appreciation in value.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received on credit.

Noncompete Clause

A provision often included in a contract to purchase a business that restricts the seller from entering the same type of business within a specified area for a certain amount of time.