Peel Co. received a cash dividend from a common stock investment. Should Peel report an increase in the investment account if it uses the cost method
A cost is the value of money that has been used up to produce something or deliver a service and is thus no longer available for use in production, research, retail, or accounting. In business, the cost could be one of acquisition, in which case the money spent to acquire it is counted as cost.
Certain investments are recorded in a company's financial statements using the cost method of accounting. When the investor has little or no influence over the investment that it owns, which is typically represented as owning less than 20% of the company, this method is used.
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