Asked by marlena oxendine on May 07, 2024
Verified
Under the cost method dividends received from an investee company are credited to the _______________ account whereas under the equity method dividends received from an investee company are credited to the _______________ account.
Cost Method
An accounting method used to value inventory or investments at their original purchase cost.
Equity Method
An accounting technique used by a company to record its investment in another company.
- Contrast the application of cost versus equity methods in accounting for investments.
Verified Answer
SS
Learning Objectives
- Contrast the application of cost versus equity methods in accounting for investments.
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