Asked by Rachel Sanchez on May 08, 2024
Verified
Dividends received on stock investments of less than 20% should be credited to the Stock Investments account.
Stock Investments Account
An account that records the cost of stocks that have been purchased as investments by a company.
Dividends Received
Income received from shares in a company, typically distributed from profits to shareholders as decided by the board of directors.
- Master the principles of accounting for investment income, focusing on dividends and interest.
Verified Answer
AP
Amber PatrixMay 14, 2024
Final Answer :
False
Explanation :
Dividends received on stock investments are typically recorded as dividend income, not credited to the Stock Investments account.
Learning Objectives
- Master the principles of accounting for investment income, focusing on dividends and interest.
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