Asked by Brandon Underhill on Jun 21, 2024
Verified
Which of the following items would not affect the investor's income for the period?
A) interest received on a temporary investment in bonds
B) dividends received on a long-term investment in stock where the investor owns 10% of the investee's stock
C) dividends received on a long-term investment in stock where the investor owns 30% of the investee's stock
D) interest received on a long-term investment in bonds
Temporary Investment
Short-term investments made with the intention of converting them into cash within a short period, usually one year or less.
Long-Term Investment
Financial investments that are not expected to be liquidated within a year and are held for growth, income, or speculative purposes.
Investor's Income
The income earned by an investor from their investment portfolio, including dividends, interest, and capital gains.
- Acquire knowledge on the accounting treatment of dividends and interest revenue within investments.
Verified Answer
Learning Objectives
- Acquire knowledge on the accounting treatment of dividends and interest revenue within investments.
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