If the Equity Method Is Used to Account for a Long-Term

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