All of the following statements regarding accounting for stock investments with insignificant influence under U.S. GAAP are true except:

A. The investment account equals the acquisition cost plus the share of investee income plus the share of investee dividends.
B. Stock investments with insignificant influence are classified as either short or long term based on managers' intent and the stock's marketability.
C. Stock investments with insignificant influence are reported at fair value.
D. When an investor owns less than 20% of voting stock, the investor is presumed to have insignificant influence.
E. Any unrealized gain (or loss) from a change in the fair value of stock investments is reported on the income statement.


Answer: A

Business

You might also like to view...

Which of the following statements is(are) false?(A) From an organization's viewpoint, transfer prices have no effect on total profits assuming the transfer occurs between two responsibility centers.(B) A transfer price is the value assigned to the transfer of goods or services between divisions within the same organization.

A. Only A is false. B. Only B is false. C. Both of these are false. D. Neither of these is false.

Business

A trained researcher was paid to visit a home with three preschoolers every day for two weeks to observe the children's bath time. This is an example of ________

A) a focus group B) experimental research C) a case study D) descriptive research E) ethnography

Business

What is NOT a role of current HRM?

a) Recruitment b) Training c) Performance management d) Line management

Business

Which of the following is B. F. Skinner's contention in his reinforcement theory?

A. People seek social equity in the rewards they receive for their performance. B. Motivation depends on how much people want something and how likely they are to get it. C. Providing hygiene factors keeps people from being dissatisfied, but it does not motivate people. D. People's behavior is learned through experiences of positive and negative consequences.

Business