The use of the equity method primarily provides information to the investor in relation to:
A) profit performance of the investee.
B) valuation of the investment.
C) dividend policy of the investee.
D) none of the above.

Question

Quizplus · Accepted Answer

The equity method focuses on the investor's share of the investee's profit or loss, reflecting the investor's share of the investee's profit performance.

The Use of the Equity Method Primarily Provides Information to the Investor