Under the equity method of accounting for an investment
A)Dividend Revenue is credited when dividends are received.
B)an Unrealized Gain account is credited when the investee reports a profit.
C)the Investment account is credited when the investee reports a profit.
D)the Investment account is credited when dividends are received.

Question

Quizplus · Accepted Answer

Under the equity method, dividends received are considered a return of investment, thus reducing the Investment account.

Under the Equity Method of Accounting for an Investment