Under the equity method,the investor ________.

Question

Quizplus · Accepted Answer

Under the equity method, the investor must record its share of the investee's net income. This is because the equity method is used when the investor has significant influence over the investee, which means the investor has the ability to participate in the investee's decisions and operations. As a result, the investor is considered to have a share in the investee's earnings and losses. The other choices are incorrect as they do not accurately describe the requirements of the equity method.

Under the Equity Method,the Investor ________