Question

__________ is recognized as income in the determination of the investor's share of the associate's profit or loss.

A) Dividend income
B) Interest income
C) Equity method income
D) Tax benefits

Answer 1

Equity method income is recognized as income in the determination of the investor's share of the associate's profit or loss.

Step-by-step explanation:

The correct answer is C) Equity method income.

Equity method income is recognized as income in the determination of the investor's share of the associate's profit or loss.

The equity method is used to account for investments in which the investor has significant influence over the operating and financial policies of the associate.