Under the equity method, the Investment in Associates account is credited when the
A) associate reports net income.
B) associate reports a net loss.
C) associate is originally acquired.
D) both when the investee reports net income and when the investment is originally acquired.

Question

Quizplus · Accepted Answer

Under the equity method, the Investment in Associates account is credited when the associate reports a net loss, as this reduces the carrying amount of the investment.

Under the Equity Method, the Investment in Associates Account Is