Question: Please use your own words and do not use the answer from the test bank (I have it). Thank you! 3. Equity Income is recognized

Please use your own words and do not use the answer

Please use your own words and do not use the answer from the test bank (I have it). Thank you!

3. Equity Income is recognized based on the net income of the investee company rather than from dividends. While this approach may have theoretical merit, what potential problems might this cause for your evaluation of the cash-flow-generating ability of the investor

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