Under the equity method the Stock Investments account is credited when the
A) investee reports net income.
B) investee reports a net loss.
C) investment is originally acquired.
D) investee reports net income and when the investment is originally acquired.

Question

Quizplus · Accepted Answer

Under the equity method, the Stock Investments account is credited (decreased) when the investee reports a net loss, reflecting the investor's share of the loss.

Under the Equity Method the Stock Investments Account Is Credited