Under the Equity Method of Accounting for Investments, Dividends Paid

Multiple Choice

Under the equity method of accounting for investments, dividends paid by the investee are recorded by the investor as:

A) no entry is made to record dividends in this accounting situation
B) a credit to Dividend Revenue of the investor company
C) a debit to the Investment account of the investor company
D) a credit to the Investment account of the investor company