Which of the following statements is correct?
A) When the equity method is used to account for an investment in an investee, the reported share of investee income must be added to net income on the statement of cash fiows.
B) When the equity method is used to account for an investment in an investee, the cash dividends received are cash inflow from investing activities.
C) Any realized or unrealized gains or losses that were reported on the statement of earnings under the market value method must be removed from net income in the operating activities section of the statement of cash flows.
D) When the equity method is used to account for an investment in an investee, the reported share of investee dividends must be deducted from net income on the statement of cash flows.

Question

Quizplus · Accepted Answer

The Answer of Which of the following statements is correct?
A) When the equity method is used to account for an investment in an investee, the reported share of investee income must be added to net income on the statement of cash fiows.
B) When the equity method is used to account for an investment in an investee, the cash dividends received are cash inflow from investing activities.
C) Any realized or unrealized gains or losses that were reported on the statement of earnings under the market value method must be removed from net income in the operating activities section of the statement of cash flows.
D) When the equity method is used to account for an investment in an investee, the reported share of investee dividends must be deducted from net income on the statement of cash flows.

Which of the Following Statements Is Correct