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.
A
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Tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year most likely would provide assurance about management's assertion of:
A. accuracy. B. cutoff. C. occurrence. D. classification.
If an expense has been incurred but not yet recorded, then the end-of-period adjusting entry would involve
a. a liability account and an asset account. b. a liability account and a revenue account. c. a liability and an expense account. d. a receivable account and a revenue account.
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Solimini Memorial Diner is a charity supported by donations that provides free meals to the homeless. The diner's budget for January was based on 3,900 meals, but the diner actually served 3,400 meals. The diner's director has provided the following cost formulas to use in budgets: Fixed elementper monthVariable element per mealGroceries$0 $2.20 Kitchen operations$4,400 $1.75 Administrative expenses$3,500 $0.15 Fundraising expenses$1,400 $0.00 ?Required:?Prepare a report showing the activity variances for each of the expenses and for total expenses for January. Label each variance as favorable (F) or unfavorable (U).
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