Which of the following investments below should be accounted for by using the cost method?

A) temporary investments in stock
B) long-term investments in stock where the investor does not have a significant influence over the investee
C) long-term investments in stock where the investor does have significant influence over the investee
D) temporary investments in stock and long-term investments in stock where the investor does not have a significant influence over the investee


D

Business

You might also like to view...

Answer the following statements true (T) or false (F)

The SEC prohibits consolidation of a subsidiary company unless majority ownership exists.

Business

If D0 = $2.25, g (which is constant) = 3.5%, and P0 = $50, what is the stock's expected dividend yield for the coming year?

A. 4.42% B. 4.66% C. 4.89% D. 5.13% E. 5.39%

Business

The Sarbanes-Oxley Act requires the chief executive officer (CEO) and chief financial officer (CFO) to certify annual and quarterly reports

Indicate whether the statement is true or false

Business

An example of a simple statement of purpose for a business report might be To recommend a new procedure for preparing quarterly financial statements

Indicate whether the statement is true or false

Business