Question

A company invested​ $45,000 in Yale Co. stock. The investment represented​ 5% of the voting stock of Yale Co. If the Yale Co. stock investment paid​ dividends, what account would be​ credited

Answer 1

the dividend revenue account is credited

Step-by-step explanation:

As we know that the dividend is the company profit that is divisible and the same is to be issued to the shareholder with respective to the number of shares purchased

In the case when Yale Co. paid the dividend so here the dividend revenue account is credited in the case when the company received the dividend

Hence, the dividend revenue account is credited