Under the equity method,the investor applies his percentage of ownership in recording his share of the investee's net income,but not dividends.

Question

Quizplus · Accepted Answer

Under the equity method, the investor records their share of the investee's net income, increasing the investment account, and decreases the investment account for dividends received, reflecting a return on the investment.

Under the Equity Method,the Investor Applies His Percentage of Ownership