If an investor company is adjusting its investment account each period by their share of the investee's net income less dividends declared, what influence does the investor company have over the investee?

Question

Quizplus · Accepted Answer

The investor company is adjusting its investment account based on its share of the investee's net income less dividends declared, which indicates that the company has significant influence over the investee. This means that the investor has the ability to participate in the investee's operating and financial policies, but does not have control over those policies.

If an Investor Company Is Adjusting Its Investment Account Each