Revenue is recognized when cash dividends are received under
the cost method.
the equity method.
the controlling interest method.
both the cost and equity methods.
13Multiple Choice Question 145
An unrealized loss on non-trading securities is
closed-out at the end of the accounting period.
deducted from the cost of the investment.
reported as a separate component of stockholders’ equity.
reported under Other Expenses and Losses in the income statement.
14Multiple Choice Question 93
Mission Inc. earns $600,000 and pays cash dividends of $150,000
during 2013. Cox Corporation owns 70,000 of the 210,000 outstanding
shares of Mission.
What amount should Cox show in the investment account at December
31, 2013 if the beginning of the year balance in the account was
$40,000?
$190,000
$200,000