Under the equity method, which of the following does not cause a decrease in the investment account?

Question

Quizplus · Accepted Answer

Under the equity method, the investment account is adjusted for the investor's share of the investee's profits or losses and reduced by dividends received from the investee. Declines in the fair value of the investment do not affect the investment account under the equity method; instead, the method focuses on the investor's share of the investee's earnings and losses.

Under the Equity Method, Which of the Following Does Not