Dividends received from trading securities are reported by the investor as ________.
A)an increase in the investment account
B)a decrease in the investment account
C)dividend revenue on the income statement
D)equity in earnings of the investee on the income statement

Question

Quizplus · Accepted Answer

Dividends received from trading securities are considered as dividend revenue on the income statement of the investor. They are not recorded as an increase or decrease in the investment account or as equity in earnings of the investee as these are typically associated with other types of investments.

Dividends Received from Trading Securities Are Reported by the Investor