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
Correct Answer:
Verified
Correct Answer:
Verified
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