Question: Under the equity method, why does the investor not recognize its share of dividends declared by an investee as income?Multiple choice question.Investee dividends received by
Under the equity method, why does the investor not recognize its share of dividends declared by an investee as income?Multiple choice question.Investee dividends received by the investor reduce the investor's total assets.The investor does not have the ability to affect the timing or the amount of investee dividends.The equity method embraces the cash basis for income recognition.The equity method embraces the accrual model for income recognition.
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