Under the equity method of accounting for share investments,dividends paid by the investee are recorded by the investor as a:

Question

Quizplus · Accepted Answer

Under the equity method, dividends paid by the investee to the investor are recorded as a reduction (credit) to the Investment in Common Shares account, reflecting the receipt of assets (usually cash) that reduces the value of the investment on the investor's books.

Under the Equity Method of Accounting for Share Investments,dividends Paid