Assuming That Errant Uses the Cost Method, What Would Be

question 64

Multiple Choice

Assuming that Errant uses the Cost Method, what would be the journal entry to record the dividends received by Errant during the year?

• A)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,000 & \\
• \hline \text { Investment in Grub } & & \$ 9,000 \\
• \hline
• \end{array}\]
• B)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,000 & \\
• \hline \text { Dividend Income } & & \$ 9,000 \\
• \hline
• \end{array}\]
• C)
• \[\begin{array} { | l | l | l | }
• \hline & \text { Debit } & \text { Credit } \\
• \hline \text { Cash } & \$ 9,000 & \\
• \hline \text { Acquisition Income } & & \$ 9,000 \\
• \hline
• \end{array}\]

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Definitions:

Innermost Tunic

Refers to the deepest layer of an anatomical structure, often used in context with the eye's layers, specifically the retina.

Neurons

Specialized cells within the nervous system that transmit information to other nerve cells, muscle, or gland cells, primarily through electrical and chemical signals.

Maculae

Specialized structures in the vestibular system of the inner ear involved in detecting linear acceleration and gravitational forces.

Crista Ampullaris

Elevation on the inner surface of the ampulla of each semicircular duct for dynamic or kinetic equilibrium.