Under the equity method, the receipt of dividends from the investee results in an increase in the investment account.

Name: Under the equity method, the receipt of dividends from the investee results in an increase in the investment account.
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Question

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Under the equity method, dividends received from the investee decrease the investment account because they are considered a return on investment, not an increase in the investor's share of the investee's net assets.

Under the Equity Method, the Receipt of Dividends from the Investee