IIA Exam IIA-CIA-Part3-3P Topic 12 Question 26 Discussion

Actual exam question for IIA's CIA Exam Part Three: Business Knowledge for Internal Auditing exam

Question #: 26
Topic #: 12

[All CIA Exam Part Three: Business Knowledge for Internal Auditing Questions]

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 Buddy at May 26, 2023, 07:28 AM

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