When Using the Equity Method to Account for an Investment

question 94

Multiple Choice

When using the equity method to account for an investment, cash dividends received by the investor from the investee should be recorded:

• A) As a reduction in the investment account.
• B) As an increase in the investment account.
• C) As dividend income.
• D) As a contra item to stockholders' equity.

---

Definitions:

Exchanging Messages

The act of sending and receiving written, audio, or video messages between individuals or groups.

Diversity

The integration of people from diverse backgrounds including different nationalities, skin color, religious beliefs, economic levels, and sexual orientations.

Characteristics

Distinctive features or qualities that define a person, object, or concept.

Experiences

Experiences are events or occurrences that leave an impression on someone, contributing to their knowledge, understanding, or development.