Under the equity method, when the equity of the investee increases, the investment account on the books increases.

Question

Quizplus · Accepted Answer

Under the equity method, the investor recognizes its share of the investee's earnings or losses as an increase or decrease in the investment account. Therefore, when the equity of the investee increases, the investment account on the books of the investor also increases.

Under the Equity Method, When the Equity of the Investee