1. At what level of investment ownership is significant influence often presumed?

		Greater than 20% of the voting stock of the investee
		Between 20% and 50% of the voting stock of the investee
		Greater than 50% of the voting stock of the investee
		Greater than 20% of the voting stock or of the fair value of the investee

2.

Under which section of a statement of cash flows would the proceeds received from the sale of long-term depreciable assets most likely appear?

		Operating cash flows
		Investing cash flows
		Financing cash flows
		Long-term assets

3.

Under the equity method, which of the following does not cause a decrease in the investment account?

		The losses of the investee
		Dividends paid by the investee
		Declines in the fair value of the investment
		All of the choices would decrease the investment account

4.

Which of the following does not affect the current liabilities section of the balance sheet?

		Purchase of inventory on credit
		Wages owed to employees but not yet paid
		Insurance bill to be paid next month
		Sale of goods on credit
		A probable legal obligation, due within 12 months