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When Applying the Rules of the Equity Method,the Long-Term Investments

Question 3

Multiple Choice

When applying the rules of the equity method,the Long-term Investments account is credited for the receipt of a cash dividend because ________.


A) the dividend decreases the investor's investment
B) it increases the investor's investment
C) there is an increase in dividend liability
D) the dividend increases the total assets

Correct Answer:

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