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IIA Exam IIA-CIA-Part3-3P Topic 8 Question 68 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam
Question #: 68
Topic #: 8
[All IIA-CIA-Part3-3P 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?

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Suggested Answer: D

by Simona at Jun 16, 2025, 10:40 AM

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Shawna
11 days ago
But if the investee has little influence, wouldn't it make sense for the dividends to increase the investment account?
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Jeannetta
13 days ago
I disagree, I believe the correct answer is D.
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Kenneth
1 months ago
Ha! Trick question, the answer is clearly A. The cash dividends received increase the investee investment account accordingly.
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Lavonda
1 months 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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Shawna
1 months ago
I think the answer is A.
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Harris
1 months ago
D sounds right to me. The investee should record the cash dividends as dividend revenue, not adjust the investment account.
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Glenn
3 days ago
D) The investee must record the cash dividends as dividend revenue.
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Brittni
9 days ago
C) The investment account is adjusted downward by the percentage of ownership.
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Gilma
15 days ago
B) The investee must adjust the investment account by the ownership interest.
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Alishia
28 days ago
A) The cash dividends received increase the investee investment account accordingly.
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Valda
1 months ago
I think the correct answer is C. The investment account should be adjusted downward by the percentage of ownership to account for the dividend received.
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Hassie
6 days ago
Oh, I see. Thanks for clarifying!
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Ricarda
23 days ago
No, the correct answer is A. The cash dividends received increase the investee investment account accordingly.
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Corazon
29 days ago
I think the correct answer is C.
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