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Question 244 - IIA-CIA-Part3 discussion

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Which of the following statements is true regarding an investee that received a dividend distribution from an entity and is presumed to have little influence over the entity?

A.
The cash dividends received increase the investee investment account accordingly.
Answers
A.
The cash dividends received increase the investee investment account accordingly.
B.
The investee must adjust the investment account by the ownership interest
Answers
B.
The investee must adjust the investment account by the ownership interest
C.
The investment account is adjusted downward by the percentage of ownership.
Answers
C.
The investment account is adjusted downward by the percentage of ownership.
D.
The investee must record the cash dividends as dividend revenue
Answers
D.
The investee must record the cash dividends as dividend revenue
Suggested answer: D
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asked 18/09/2024
Andy Mahoney
28 questions
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