For an investment accounted for under the equity method, the Investment in Affiliates account along with an investment income account would be increased for an amount equal to the investor's proportionate share of the affiliate's reported net income.

Question

Quizplus · Accepted Answer

According to the equity method of accounting, an investor records its share of an affiliate's net income in its Investment in Affiliates account along with an investment income account. This means that the answer is true.

For an Investment Accounted for Under the Equity Method, the Investment