If the equity method is being used, the Income from Associates account is
A) another name for a Dividend Revenue 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

Under the equity method, the investor recognizes its share of the investee's net income as income, so the Income from Associates account is credited when the investee reports net income.

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