An Investor Receives a Cash Dividend from an Investment with 3

question 30

Multiple Choice

An investor receives a cash dividend from an investment with 3% ownership and insignificant influence.Which journal entry is required?

• A)a debit to Cash and a credit to Dividend Revenue
• B)a debit to Cash and a credit to Interest Revenue
• C)a debit to Cash and credit to Equity-Method Investment
• D)a debit to Cash and credit to Interest Receivable

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Definitions:

Probable Cause

Reasonable grounds for believing that a search should be conducted or that a person should be arrested.

Arrest Warrant

A legal document issued by a judge or magistrate that authorizes law enforcement to arrest an individual on suspicion of committing a crime.

Crime

An action or omission that constitutes an offense and is punishable by law.

Accesses

The act of approaching or entering a place, or the ability to use, look at, or obtain something.