IIA Exam IIA-CIA-Part3-3P Topic 3 Question 28 Discussion

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

Question #: 28
Topic #: 3

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 Raina at Jul 30, 2023, 12:42 AM

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