Which of the Following Statements About the Equity Method Is

question 5

Multiple Choice

Which of the following statements about the equity method is NOT true?

• A) The investment asset is valued at cost on acquisition.
• B) The investment asset is increased for the investing company's share of the investee company's profit.
• C) When the investee company pays a dividend, the investing company credits dividend revenue.
• D) The investment asset is decreased for the investing company's share of the investee company's loss.