When applying the rules of the equity method, the equity investments account is credited for the receipt of a cash dividend because?

Question

03-08-2022
Business

Answered

Connect with a knowledgeable community and get your questions answered on IDNLearn.com. Get the information you need from our community of experts, who provide detailed and trustworthy answers.

When applying the rules of the equity method, the equity investments account is credited for the receipt of a cash dividend because?

Sagot :

We value your participation in this forum. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Thank you for choosing IDNLearn.com. We’re dedicated to providing clear answers, so visit us again for more solutions.

Which Couples Are Most Likely To Divorce?A. Older Couples Whose Children Have Moved Out Of The HouseB. Couples With Few ResourcesC. Wealthy Couples With Diverse

The Length Of The Interval That Contains The Middle 50% Of Measurements Is Known AsA. The 50% Percentile B. The Tolerance Interval C. The Median D. The Inter

Which Of The Following Was True Of The Antifederalists?A. They Lived In Urban Areas.B. They Attended The Constitutional Convention.C. They Supported A Strong Ce

(b) If The Diameter Of The Base Of A Cylindrical Pipe Is 30 Cm, Find The Area Of The Base Of The Pipe. [tex](\pi=3.14)[/tex]7. (a) If The Area Of The Base Of A

What Is The Most Important Thing To Remember Regarding Your Appearance During An Interview?A. Cologne Is Important.B. You Should Express Your Individuality Abov

Why Are There So Many Interest Groups And Social Movements?A. Because Most People Join Groups Even When They Don't Directly Benefit.B. Because The Free Rider Pr

Select From The Drop-down Menu To Correctly Identify The Property Shown.[tex]\[ 0.8 + (1.2 + (-3)) = (0.8 + 1.2) + (-3) \][/tex]Choose...

A Circular Region 4.00 M In Radius Is Filled With An Electric Field Perpendicular To The Face Of The Circle. The Magnitude Of The Field In The Circle Varies Wi

How Many Classes Do You Need For Nursing At Mary Hardin Baylor?

15. The Probability Distribution Of A Discrete Random Variable [tex]$ X $[/tex] Is Given Below:[tex]\[ \begin{tabular}{|c|c|c|} \hline X & -1 & 0 \\ \

MubeenaDidn MubeenaDidn · Answer 1 · 2022-08-13T04:46:04-04:00

When applying the rules of the equity method, the equity investments account is credited for the receipt of a cash dividend because the dividend decreases the Investor’s Investment Conclusion.

A business uses the equity method as an accounting approach to record the earnings made by its investment in another business. The investor firm declares the revenue generated by the other company on its income statement using the equity method of accounting, in a proportional amount to the equity stake it has in the other company.

The equity technique recognizes the significant economic connection between the two businesses. On the income statement, the investor denotes their portion of the investee's profits as revenue from investments.

Using the equity method, a company that owns 25% of a company with a $1 million net income would report profits from its $250,000 investment.

To learn more about Equity Method here

https://brainly.com/question/24321852

#SPJ4

Sagot :

Other Questions