Under the equity method of accounting, the receipt of a cash dividend is not recorded as dividend
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Under the equity method of accounting, the receipt of a cash dividend is not recorded as dividend revenue. Instead the receipt of a dividend is recorded by crediting reducing the investment account of the company that paid the dividend. Considering the equity method of accounting is used only when a company has a greater then ownership interest, why do you think the equity method does not allow for the recording of revenue when a dividend is received?
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