Question

When an investor uses the equity method to account for investments in common stock, the investor’s share of cash dividends from the investee should be recorded as:.

Answer 1

It should be noted that When an investor uses the equity method to account for investments in common stock, cash dividends received by the investor from the investee should be recorded as deduction from the investor's share of the investee's profits.

What is an Equity method?

Equity method  can be regarded as a process of treating investments when dealing with associate companies.

In this method, cash dividends received by the investor from the investee should be recorded as A deduction from the investor's share.

Learn more about Equity method at;

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