Under the equity method, the dividend revenue from a long-term investment-which has an ownership of 20% to 50%-the dividend is treated as a:

Name: Under the equity method, the dividend revenue from a long-term investment-which has an ownership of 20% to 50%-the dividend is treated as a:
Brand: Quizplus
Rating: 4.8 (46 reviews)

Question

Quizplus · Accepted Answer

Under the equity method, dividends received are considered a return of capital, reducing the carrying amount of the investment rather than being recognized as dividend revenue.

Under the Equity Method, the Dividend Revenue from a Long-Term