For an investment accounted for under the equity method, the investment account along with an investment income account would be increased for an amount equal to the investor's proportionate share of the affiliate's reported net income.

Question

Quizplus · Accepted Answer

Under the equity method, the investor reports its share of the affiliate's net income and increases its investment account and investment income account accordingly. Therefore, the statement is true.

For an Investment Accounted for Under the Equity Method, the Investment