When the equity method of accounting for investments is used, dividends received from the investee corporation reduce the balance in the investment account on the investor 's balance sheet and aren 't treated as investment income on the income statement Explain ...

When the investor can exert significant influence ove ...

When the equity method of accounting for investments is used, dividends received from the investee corporation reduce

Question:

When the equity method of accounting for investments is used, dividends received from the investee reduce the balance in the investment account on the investor's and aren't treated as investment income on the income statement. Explain.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...