Asked by
Leslie Tavarez
on Oct 28, 2024
Verified
Under the equity method,dividends received are recognized by increasing the Investment Revenue account.
Equity Method
An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's income or losses.
Investment Revenue
Income generated from the holding of investments like stocks, bonds, real estate, and other assets.
- Familiarize oneself with the workings of the equity method in accounting, including its influence on dividend distribution and investment appraisal.
Verified Answer
CM
Learning Objectives
- Familiarize oneself with the workings of the equity method in accounting, including its influence on dividend distribution and investment appraisal.
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