Question

Are investments that involve dividends and shares owned by other companies that have been received by...

Are investments that involve dividends and shares owned by other companies that have been received by the company issuing the shares & dividends a source of revenue or income?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Such will be considered as income.

Explanation

Investments that involves shares and dividends whether they are owned or issued are the form of income only. Such investments generates income in form of dividends, they cannot be considered as revenue.

This is because, any company generates revenue from trading not from investments.

So if any company involved in trading of share, then any earning generated from such shares in form of dividends would be considered as revenue.

Otherwise investments that involve dividends and shares owned by other companies that have been received by the company issuing the shares & dividends would be a source of income only.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. Charlie's Chocolates' stockholders made investments of $58,000 and received dividends of $24,000. The company has...
1. Charlie's Chocolates' stockholders made investments of $58,000 and received dividends of $24,000. The company has revenues of $91,000 and expenses of $68,000. Calculate its net income. 2. Charlie’s Chocolates’ stockholders made investments of $50,000 and received dividends of $20,000. The company has revenues of $83,000 and expenses of $64,000. Calculate its net income.
12. Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares...
12. Hulse Company had the following transactions pertaining to stock investments. Feb. 1 Purchased 600 shares of Wade common stock (2%) for $7,200 cash. July 1 Received cash dividends of $1 per share on Wade common stock. Sept. 1 Sold 300 shares of Wade common stock for $4,300. Dec. 1 Received cash dividends of $1 per share on Wade common stock. Instructions (a) Journalize the transactions. (b)  Explain how dividend revenue and the gain (loss) on sale should be reported in...
Delta Company has some investments that paid dividends during the year. The auditors have already signed...
Delta Company has some investments that paid dividends during the year. The auditors have already signed off on the treatment of the investments themselves, but what is the best methodology to validate the dividends received from Delta?
Under the fair value/cost method of accounting for stock investments, an investor records dividends received from...
Under the fair value/cost method of accounting for stock investments, an investor records dividends received from earnings accumulated after the investment is acquired as dividend income. How does an investor treat dividends received from earnings accumulated before an investment is acquired?
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have...
Shareholders’ Equity Preferred shares cash dividends have been declared and paid. Common share cash dividends have been declared, but not paid. HEMI’s board of directors declared a 10% common stock dividend on November 1, 2019. Common shares for the stock dividends were issued to the existing common shareholders on December 30, 2019. However, the transaction has not been recorded in HEMI’s accounting records. HEMI is authorized to issue 50,000,000 common shares. HEMI issued 12,000,000 common shares on January 2, 2019...
In the following paragraph Is FCA accounting for its equity investments in a way that is...
In the following paragraph Is FCA accounting for its equity investments in a way that is consistent with U.S. GAAP? explain... FCA Interests in other companies are measured at fair value. Investments in equity investments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are recognized at cost. For investments classified as available-for-sale, financial assets gains or losses arising from changes in fair value are recognized in Other comprehensive...
Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the...
Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 1,050 shares of Wong Inc. stock for $54 per share plus a $525 brokerage commission. Mar. 16 Received dividends of $0.30 per share on Wong Inc. stock. June 7 Purchased 600 shares of Wong Inc. stock for $61 per share plus a $300...
12. Which of the following is INCORRECT regarding stocks? Shareholders have the lowest claim to cash...
12. Which of the following is INCORRECT regarding stocks? Shareholders have the lowest claim to cash flows after other stakeholders of the company. Stocks are generally riskier than bonds. An already public company issuing more shares to raise capital is referred to as an SEO. Mature companies with more stable cash flows are more likely to pay dividends. Average dividend payout ratio of U.S. companies has been increasing over time.
Watson Company has several investments in the securities of other companies. The following information regarding these...
Watson Company has several investments in the securities of other companies. The following information regarding these investments is available at December 31, 2016. 1. Watson holds bonds issued by Fowler Corp. The bonds have an amortized cost of $600,000, and their fair value at December 31, 2016, is $700,000. Watson intends to hold the bonds until they mature on December 31, 2022. 2. Watson has invested idle cash in the equity securities of several publicly traded companies. Watson intends to...
Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the...
Entries for Stock Investments, Dividends, and Sale of Stock Yerbury Corp. manufactures construction equipment. Journalize the entries to record the following selected equity investment transactions completed by Yerbury during a recent year: Feb. 2 Purchased for cash 600 shares of Wong Inc. stock for $64 per share plus a $300 brokerage commission. Mar. 16 Received dividends of $0.30 per share on Wong Inc. stock. June 7 Purchased 400 shares of Wong Inc. stock for $74 per share plus a $200...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT