Dividends Received by a Parent from a Subsidiary Are Accounted

Dividends received by a parent from a subsidiary are accounted for:

A) As revenue to the parent since the parent has been recording the investment in the subsidiary using the cost method on its own non-consolidated financial statements.
B) As a transfer to cash since no intragroup realized profit transactions are required to be recorded.
C) As a reduction of cost of sales on the parent's income statement.
D) None of the above

Correct Answer:

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