Asked by
Sydney Milella
on Oct 16, 2024
Verified
When using the equity method for investments in equity securities,the investor records the receipt of cash dividends as revenue.
Equity Method
An accounting technique used for recording investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee's profits or losses.
Cash Dividends
Dividends paid out in cash by a corporation to its shareholders from its earnings.
- Discriminate between assorted investment accounting techniques contingent on the level of authority over the investee.
Verified Answer
JJ
Learning Objectives
- Discriminate between assorted investment accounting techniques contingent on the level of authority over the investee.
Related questions
Hamasaki Company Owns 30% of CDW Corp ...
If a Long-Term Investment in an Equity Security Gives the ...
When Using the Equity Method,receipt of Cash Dividends Increases the ...
Under the Equity Method, a Stock Purchase Is Recorded at ...
Ordinarily, a Corporation Owning a Significant Portion of the Voting ...