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Cash Cow Entity Declares a Dividend on Dec

Question 23

Multiple Choice

Cash Cow Entity declares a dividend on Dec. 27, 20X1. ABC Entity pays the dividend on Jan. 3, 20X2. Investor Entity receives a $1,000 dividend payment on Jan. 3. When should Investor Entity recognize the dividend revenue?


A) 20X1
B) 20X2
C) Cash received from dividends is not classified as revenue.

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