Dividends received from available-for-sale 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 available-for-sale securities are reported as dividend revenue on the investor's income statement. They do not affect the investment account or equity in earnings of the investee.

Dividends Received from Available-For-Sale Securities Are Reported by the Investor