Asked by Ouita Weeden-Dawson on May 21, 2024
Verified
Under the equity method the receipt of dividends from the investee company results in an increase in the Stock Investments account.
Equity Method
An accounting technique used to record investments in associate companies, reflecting the investor’s share of the investee’s profit or loss.
Stock Investments Account
An account that records the purchase price and subsequent value of stock investments owned by an individual or a company.
Dividends
Money given out to shareholders by a business, often coming from the profits made by the company.
- Understand the accounting for investment income, including dividends and interest.
Verified Answer
Learning Objectives
- Understand the accounting for investment income, including dividends and interest.
Related questions
When Recording Bond Interest Interest Receivable Is Reported as a ...
On January 1 2017 Brenner Company Purchased at Face Value \(\begin{array}{llr} ...
Dividends Received on Stock Investments of Less Than 20% Should ...
The Investor Carrying an Investment by the Equity Method Records ...
The Journal Entry Pierce Will Record on June 30 Will ...