Under the equity method, the investor recognizes as revenue (expense) each period _____.The investor recognizes dividends received from the investee as a(n) _____.

Question

Quizplus · Accepted Answer

Under the equity method, the investor recognizes its share of the net income (loss) of the investee as revenue (expense) each period. Dividends received from the investee are considered a return (reduction) of investment, not income.

Under the Equity Method, the Investor Recognizes as Revenue (Expense)