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LenKa [72]
2 years ago
6

An investor company uses the equity method to account for its investment in 25% of the outstanding common stock of an investee c

ompany. How should cash dividends received from the investee affect the financial statements of the investor
Select one:
a. A decrease in the Equity Investment account
b. A decrease in retained earnings
c. An increase in the Equity Investment account
d. Dividend income
Business
1 answer:
masya89 [10]2 years ago
4 0

Answer:

Option A is correct.

<u>A decrease in the Equity Investment account</u>

Explanation:

Dividend received amount decreases the investment account. Net income interest in investee account is added to the investment account.

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nadezda [96]
Because people who are earning a low income still have to pay the same amount as people who are recieving a high income
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3 years ago
2. Which of the following groups of users would primarily be interested in a company's annual
KengaRu [80]

Answer:

C. Shareholders and providers of finance

Explanation:

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Shareholders are the owners of a business. They are interested in the financial reports to know if their venture is making profits. Shareholders expect to earn dividends from the business. Only a profitable business is able to declare dividends. Financial reports guide shareholders in making decisions regarding the future of the business.

Lenders provide debt capital to a business. If the company is profitable, then lenders are happy because their payments are assured. Lenders rely on financial reports in deciding whether to extend or deny credit to businesses.

3 0
2 years ago
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timurjin [86]

Answer:

1. Ellen would only be able to recover the $500,000 insurance proceed if she should be able to find a technicality in the insurance company's rules and regulation. <em>This is because, strictly following the rules, there is nothing she can do regarding to the claim.</em>

<em />

2. It is not ethical for the insurance company to deny the claim of Ellen on the basis of technicality but when viewed from another perspective, they are strictly following the rules of the insurance organization and applying it to the later.<em> It is now left for the claimant to find another technicality on why he or she must be paid the insurance claim.</em>

Explanation:

7 0
3 years ago
How do life expectancy at birth and political freedom change the relative ranking of living standards that real GDP per person​
irina [24]

Answer:

Answer is A.

Explanation:

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8 0
2 years ago
A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage
s344n2d4d5 [400]

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From thr first paragraph it is clear that usage segmentation is used to separate the user's into different classes based on their usage, and identify which class to target when it comes to sales. At Estelle Cosmetics Company, it was deduced that of this company's total sales, less than 7% of this market are heavy users. These users purchase nearly 71% of the company's products. This company will probably focus their marketing efforts on the heavy users, as they contribute to the majority of sales within their company.

7 0
3 years ago
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