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
Hunter-Best [27]
3 years ago
14

In a situation where the investor exercises significant influence over the investee, which of the following entries is not actua

lly posted to the books of the investor? 1) Debit to the Investment account, and a Credit to the Equity in Investee Income account. 2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue. 3) Debit to Cash (for dividends received from the investee), and a Credit to the Investment account.
Business
1 answer:
Aneli [31]3 years ago
7 0

Answer:

2) Debit to Cash (for dividends received from the investee), and a Credit to Dividend Revenue.

Explanation:

Whenever the investment is made in shares of a company where the investor can exercise significant influence, then equity method is used.

Under equity method, it is that all incomes of investee company are incomes of investor company.

And any amount of income received as a distribution is deducted from the carrying value of investment, as reduces the cost of investment.

Thus, any dividend received is debited and investment account is credited.

Dividend is never treated as dividend revenue.

Thus, option 2 is not correct.

You might be interested in
1. What's NOT an assumption we usually make about costly products and services?
zloy xaker [14]

Answer:

B

Explanation:

I would assume the correct answer would be B. This is because when you go to a store you typically assume the higher cost item is of higher quality then the lower cost item. For example: One may buy a yeti cooler over an igloo cooler because the very high price tag makes them feel as if the cooler is just that much better then the competitor. If correct please mark brainliest.

3 0
3 years ago
Which is not an inefficiency caused by binding price ceilings? illegal activity inefficient allocation to consumers wasted resou
stiv31 [10]

Answer: inefficient allocation of sales among sellers

Explanation:

A binding price ceiling is one in which the government imposes a legal minimum price that can be charged for a good, when the equilibrium price is below it. The ceiling creates a shortage in the market which leads to illegal activities, wasted resources and inefficient allocation to consumers.

However, it does not lead to inefficient allocation of sales among sellers.

4 0
3 years ago
Who is responsible for the setup of speakers for a banquet
Elza [17]

Answer:

I think manager??????????

6 0
3 years ago
Was Justice Antonin Scalia a conservative or liberal?
hjlf

QUESTION -

Was Justice Antonin Scalia a conservative or liberal?


ANSWER -

Antonin Scalia, (born March 11, 1936, Trenton, New Jersey, U.S.—died February 13, 2016, Shafter, Texas), associate justice of the Supreme Court of the United States from 1986 to 2016, well known for his strong legal conservatism. He was the first Supreme Court justice of Italian ancestry.


            <u>*******Antonin Scalia was a CONSERVATIVE*******</u>

8 0
3 years ago
The revenue cycle is a major cycle for most companies. Accounts receivable, revenue, and other accounts are tested through this
Eduardwww [97]

Answer and Explanation:

1. The misstatement would depend on  when there is inappropriate revenue recorded

2. For avoiding the revenue misstatement, the client should have to cut off the policies

3.  The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation

4.  The side agreements could modify the terms of sales

5. For recording the revenue, the collectibility needs to be confirmed

6 0
3 years ago
Other questions:
  • Louise owned a house next to Robert's house. Robert made a contract with Midcity Painters to paint his house. The painters arriv
    9·1 answer
  • _____ integrates advertising of branded products into interactive games.
    5·1 answer
  • Monsters Incorporated (MI) in ready to launch a new product. Depending upon the success of this product, MI will have a value of
    15·1 answer
  • Pharoah Corporation has the following long-term investments. (1) Common stock of Eidman Co. (10% ownership), cost $102,500, fair
    8·1 answer
  • Weighted Average Cost Flow Method Under Perpetual Inventory System
    5·1 answer
  • What is the function of the ppi
    15·1 answer
  • Baron Corporation has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following
    15·1 answer
  • Your first job is in hotel management and recently you were promoted to Hotel Manager for a large convention hotel in downtown N
    6·1 answer
  • How did IT help the company solve that problem?
    8·1 answer
  • For a contract to be ________ it must meet the requirement of _______, and both the subject matter and the performance of the co
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!