Final answer:
Regular cash dividends received by an investor in a long-term investment in stocks are recorded as income.
Step-by-step explanation:
An investor receives regular cash dividends in a long-term investment in stocks. These dividends are recorded as income. Dividends are direct payments made to shareholders by the firm as a form of return on their investment. They are considered as income because they represent a portion of the company's profits that are distributed to shareholders.