If the equity method is being used, the Income from Associates account is
A)another name for a Dividend Income account.
B)credited when dividends are declared by the investee.
C)credited when net income is reported by the investee.
D)debited when net income is reported by the investee.

Question

Quizplus · Accepted Answer

The Income from Associates account is credited when net income is reported by the investee under the equity method, as the investor recognizes their share of the investee's earnings as income.

If the Equity Method Is Being Used, the Income from Associates