If an investment is accounted for by using the equity method, a cash dividend received on the investment will:
A) Decrease the investment account and have no effect on the investment revenue account.
B) Increase the investment account and the investment revenue account.
C) Decrease the investment account and increase the investment revenue account.
D) Have no effect on the investment account or on the investment revenue account.
Correct Answer:
Verified
Q50: The equity method causes the balance in
Q51: A parent corporation that uses the
Q52: Under the equity method of accounting for
Q53: Cash dividends declared out of current
Q54: Using the cost method, an investment in
Q56: When 30% of another company's common shares
Q57: The equity method of accounting for a
Q58: Non-controlling interest (NCI) is a separate equity
Q59: The equity method has all the following
Q60: ABC owned the following equity securities
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents