Dividends Received for Equity Securities in Which the Investor Lacks

question 186

True/False

Dividends received for equity securities in which the investor lacks the ability to participate in the decisions of the investee company are recorded with a debit to the Dividend Revenue account.

---

Definitions:

Partial Assignment

The transfer of a portion of the interest or rights in a contract, property, or other asset from one party to another.

Contractual Rights

Legal entitlements embedded within a contract that dictate what each party to the agreement may or may not do.

Consideration

The benefit, interest, or value that induces a party to enter into a contract.

Revoking Assignment

The act of withdrawing or cancelling a task, duty, or responsibility that has been assigned to someone.