If the Equity Method Is Used to Account for a Long-Term

question 69

Multiple Choice

If the equity method is used to account for a long-term investment in common stock,cash dividends received from the investee are recorded by the investor as:

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

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Definitions:

Discrimination

The unjust or prejudicial treatment of different categories of people, often based on race, age, sex, or disability.

Punished

The act of imposing a consequence or penalty on someone for a perceived wrongdoing or undesirable behavior.

Responses

Reactions or replies to stimuli, questions, or actions, which can vary from verbal to non-verbal and emotional to physical.

B.F. Skinner

An American psychologist and behaviorist known for his work in developing the theory of operant conditioning, emphasizing the role of reinforcement in shaping behavior.