Match each of the definitions that follow with the appropriate investment term (a-j).
-When using this, dividends are treated as a reduction of the investment
A)Debt securities
B)Equity securities
C)Investor
D)Investee
E)Cost method
F)Trading securities
G)Available-for-sale securities
H)Held-to-maturity securities
I)Equity method
J)Business combination

Question

Quizplus · Accepted Answer

Under the equity method, dividends received from the investee are treated as a reduction of the investment, as the investor recognizes their share of the investee's earnings.

Match Each of the Definitions That Follow with the Appropriate