Under the cost-adjusted-to-market method of accounting for an investment,
A)Dividend Income is credited when dividends are received.
B)the investment account is credited when dividends are received.
C)the investment account is credited when the investee reports a net income.
D)Investment Income is credited when the invested reports a net income.

Question

Quizplus · Accepted Answer

Under the cost-adjusted-to-market method, dividend income is recognized as income when dividends are received, so Dividend Income is credited.

Under the Cost-Adjusted-To-Market Method of Accounting for an Investment