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If the cost method is used to account for a long-term investment in common stock, dividends received should be Group of answer choices credited to the Stock Investments account. credited to the Dividend
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If the cost method is used to account for a long-term investment in common stock, dividends received should be Group of answer choices credited to the Stock Investments account. credited to the Dividend Revenue account. debited to the Stock Investments account. recorded only when 20% or more of the stock is owned.

User Nindalf
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8 votes

Answer: credited to dividend revenue account

Step-by-step explanation:

Dividend refers to a fund that's given by a company to its shareholders. It can be issued in different forms such as stocks, cash payments etc.

It should be noted that under the cost method, the dividend will not be credited to the investment account but will rather be credited to dividend revenue account.

User Loretoparisi
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