Zhang Corp. owns 40% of Magnor Company's common stock. Magnor pays $97,000 in total cash dividends to its shareholders. Zhang's entry to record the cash dividend received from Magnor would include a:
A. Credit to Cash for $97,000.
B. Debit to Dividends for $38,800.
C. Debit to Dividends for $97,000.
D. Debit to Equity Method Investments for $97,000.
E. Credit to Equity Method Investments for $38,800.
Answer: E
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Federal, state, and local governments enact regulations to ensure businesses are fair to each other as well as:
A. Ensure that businesses don't take advantage of consumers B. Ensure that no business dominates market share C. Make sure most businesses are well funded D. Create profits for themselves E. Ensure that consumers can't take advantage of businesses
Sharon fell while making an inspection of a machine at work and in the fall, she broke her arm. Can she collect workers' compensation for the time she had to be away from work as she recovered?
a. Yes, since the injury occurred while she was engaged in her job at work. b. Yes, if she can prove that the injury was caused by a fellow employee. c. No, she can only receive compensation for her medical expenses. d. No, she will have to sue her employer if she wants to collect for lost wages.
Carlos owns a store in Polk County. His trade extends throughout River City, but not beyond the county limits. He sells his store to Virginia and, as part of the transaction, agrees not to engage in the same business anywhere within the state for a period of four years. The agreement:
a. is reasonable. b. is unreasonable. c. unduly interferes with the interests of the public. d. Two of these.
S. Green Consulting paid $2,500 cash for a 5-month insurance policy which begins on December 1. Given the choices below, determine the general journal entry that S. Green Consulting will make to record the cash payment. Assume the company's policy is to initially record prepaid and unearned items in balance sheet accounts.
A.
| Insurance Expense | 2,500 | |
| Cash | 2,500 |
B.
| Prepaid Insurance | 2,500 | |
| Cash | 2,500 |
C.
| Cash | 2,500 | |
| Insurance Expense | 2,500 |
D.
| Insurance Expense | 2,500 | |
| Prepaid Insurance | 2,500 |
E.
| Cash | 2,500 | |
| Prepaid Insurance | 2,500 |