1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
What is the IRR for a project that costs $100,000 and provides annual cash inflows of $30,000 for 6 years starting one year from
ahrayia [7]

Answer:

A) 19.91%

Explanation:

Net present value of cash flow at 19.91% can be calculated as follows

- 100000 + 30000/1.1991 + 30000/ (1.1991)² + 30000/(1.1991)³ + 30000/ (1.1991)⁴ +30000/(1.1991)⁵ + 30000/ (1.1991)⁶

= -100000 + 25018 +20864 +17400 +14511 +12101 +10092

= 0 ( approx )

So  the IRR for the  project is 19.91 % .

8 0
3 years ago
The systems viewpoint sees organizations as entities made up of four interrelated parts known as Group of answer choices inputs,
Reil [10]

Answer:

inputs, outputs, transformation processes, and feedback.

Explanation:

The viewpoint of the system that could see the organziation as the entities as they should be made of the input as the raw material, output as the finished product, transformation process as when the raw material is converted into the finished product and the feedback as the client feedback related to the product and service

So as per the given situation the above should be the answer

6 0
2 years ago
In November, two months before year-end, the bookkeeper erroneously recorded the receipt of a one year bank loan with a debit to
OleMash [197]

In November, two months before year-end, the bookkeeper erroneously recorded the receipt of a one-year bank loan with a debit to cash and a credit to interest revenue. The most effective method for detecting this type of error is to Send a bank confirmation as of year-end.

A business may additionally have sales in a given time period that includes invoices they have got sent out to customers, in addition to coins bills that have been made at the time of a buy. All of these incomes are included as revenue during that term.

Sales are described as the profits generated through a commercial enterprise' number one operations. Its miles are often known as the “pinnacle line” and are proven at the top of an earnings announcement. internet income is an accounting time period that refers to the entire revenue minus the entire costs for any given length.

Learn  more about revenue here brainly.com/question/16232387

#SPJ4

7 0
9 months ago
Hello people, I was wandering if I could get some people to complete this questionnaire for my business course. It would be very
8_murik_8 [283]

Answer:

I did it thank you for points too

4 0
3 years ago
Enok, a prospective franchise owner, is looking to keep his monthly costs as low as possible. The franchisor he is checking out
slamgirl [31]

Answer:

Option (3) is correct.

Explanation:

Given that,

Enok, a prospective franchise owner,

Royalty payments = 8 percent of sales could be as high as $300,000 per month

Therefore, the franchiser is claiming that a franchisee can expect monthly sales to be as high as:

= $300,000 × (100 ÷ 8)

= $300,000 × 12.5

= $3,750,000

Option (3) is correct.

4 0
3 years ago
Other questions:
  • The following accounts are from last year’s books at Sharp Manufacturing: Raw Materials Bal 0 (b) 154,000 (a) 164,000 10,000 Wor
    7·1 answer
  • "Find the amount of each payment to be made into a sinking fund which earns 7​% compounded quarterly and produces ​$50 comma 000
    6·1 answer
  • Stock A's beta is 1.5 and Stock B's beta is 0.5. Which of the following statements must be true, assuming the CAPM is correct. a
    6·1 answer
  • Devon Company has collected the following data for one of its​ products: Direct materials standard​ (4 pounds​ @ $1/lb.) ​$4 per
    7·1 answer
  • which result is a positive aspect of globalization a.intense competition b. decreased profit margins c. increased cooperation co
    11·1 answer
  • Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan
    9·1 answer
  • Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby
    13·1 answer
  • What is online bill payment? A. a service that provides consumers with credit for bill payments B. a service that pays bills wit
    11·2 answers
  • Producers of Ocean Spray cranberry products decided to make Craisins (and dried cranberry snack food) available in convenience s
    9·1 answer
  • Clarifying the issues of a problem is the _____ step in the problem solving process.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!