Under the equity method, the Investment in Associates account is increased when the

A) associate reports net income.
B) associate pays a dividend.
C) associate reports a loss.
D) investment is sold at a gain.

Associate

A term that may refer to a business partner, an employee position within a company, or a relationship between entities where one has significant influence over the other.

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence but does not have full control over that company.