IIA Exam IIA-CIA-Part3-3P Topic 10 Question 53 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 53
Topic #: 10

Which of the following statements is true regarding an investee that received a dividend distribution from an entity and is presumed to have little influence over the entity?

AThe cash dividends received increase the investee investment account accordingly.

BThe investee must adjust the investment account by the ownership interest.

CThe investment account is adjusted downward by the percentage of ownership.

DThe investee must record the cash dividends as dividend revenue.

Show Suggested Answer

Suggested Answer: D

by Ardella at Sep 19, 2024, 12:39 PM

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Reita

23 days ago

I've got a good feeling about C. Reducing the investment account by the ownership percentage seems like the logical way to go here.

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Gail

24 days ago

Haha, I bet the answer is A. Increasing the investment account for cash dividends? That's just silly!

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Eve

25 days ago

Hmm, this is a tricky one. I'm going to go with B, the investee must adjust the investment account by the ownership interest.

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Colton

1 months ago

D seems like the obvious choice here. The investee should record the cash dividends as dividend revenue, not adjust the investment account.

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Kizzy

13 days ago

A) The cash dividends received increase the investee investment account accordingly.

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Beth

1 months ago

I'm not sure, but I think the answer might be C) The investment account is adjusted downward by the percentage of ownership.

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Felice

1 months ago

I disagree, I believe the correct answer is D) The investee must record the cash dividends as dividend revenue.

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2 months ago

I think the answer is A) The cash dividends received increase the investee investment account accordingly.

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