Under the Equity Method of Accounting for an Investment

question 84

Multiple Choice

Under the equity method of accounting for an investment:

• A) The investment account remains at initial value.
• B) Dividends received are recorded as revenue.
• C) Goodwill is amortized over 20 years.
• D) Income reported by the subsidiary increases the investment account.
• E) Dividends received increase the investment account.

---

Definitions:

Multidisciplinary Committee

A group comprising members from different fields of expertise, working together towards common goals or to solve complex issues.

Government Funded

Financial support provided by government agencies for projects, programs, or research, typically through grants or subsidies.

Private Sector

The part of a country's economic system that is run by individuals and companies, rather than by the government.

Private Organizations

Entities that operate independently of government control, often driven by private ownership or non-profit motives.