Financial Accounting
Financial Accounting
9th Edition
ISBN: 9781259738692
Author: Libby
Publisher: MCG
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Chapter A, Problem 3MCQ

Dividends received from stock that is reported as an available-for-sale security in the long-term assets section of the balance sheet are reported as which of the following?

  1. a. An increase to cash and a decrease to the investment in stock account.
  2. b. An increase to cash and an increase to revenue.
  3. c. An increase to cash and an unrealized gain on the income statement.
  4. d. An increase to cash and an unrealized gain on the balance sheet.
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