An Investor Receives a Cash Dividend from an Investment with 48

question 31

Multiple Choice

An investor receives a cash dividend from an investment with 48% ownership and significant 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 Equity-Method Investment
• C)a debit to Equity-Method Investment and a credit to Dividend Revenue
• D)a memorandum entry only

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Definitions:

Drill Bits

Tools made of hard material, often high-speed steel or carbide, used to create cylindrical holes.

Chamfering

The process of creating a beveled edge at the intersection of two surfaces to remove sharp edges for safety, aesthetics, or part assembly.

Groove

A long, narrow cut or depression in a hard material, often used to fit another component or allow the passage of fluids.