1) When an investor plans to generate investment income without intending to establish a long-term relationship with the investee, this investment would be classified as a/an:

Select one:

a. Long-term investment

b. Non-strategic investment

c. Strategic investment

d. Short-term investment

2) Demure Company purchases 1000 common shares in Liberty Company on January 1, 2020, at $20 per share. The 1,000 common shares represent only 1% of Libertys outstanding common stock. Demure intends to hold these shares for more than one year. Suppose that on September 31, 2020, Demure Company received $500 in cash dividends from Liberty Company. What is the account to be credited to record the transaction?

Select one:

a. Dividend Revenue

b. Interest Receivable

c. Interest Revenue

d. Cash