For each of the following statements, circle (T) or (F) to indicate whether the statement is true or false The market method is the method of accounting for investments in equity securities used when one company owns less than 20% of the common stock of another company. Amounts due from customers are called accounts payable. Retained earnings indicate the amount of cash available for distribution to shareholders. A subsidiary is a company that owns more than 50% of another business's stock. Intercompany eliminations avoid double counting on consolidated financial statements Trading securities are investments where there is no intention to sell in the near future. An example of a financing activity on the statement of cash flows is payment of cash dividends. Available for sale securities are investments where there is no intention to sell in the near future. The parent-subsidiary relationship requires special accounting treatment The statement of cash flows classifies changes in cash as operating, investing, and financing activities. A ____ is not considered a cash equivalent. a. money market fund b. treasury bill c. bank account d. none of these answers is correct The effects of price changes in marketable securities are reported ____. a. as a gain or loss on the income statement b. as an increase or decrease in stockholders' equity c. either as a gain or loss on the income statement or the balance sheet, depending upon the classification of the securities d. either as a gain or loss on the income statement, depending upon the number of shares owned Treasury stock is ____. a. unissued shares of a corporation's own stock b. shares of a corporation's stock which have been issued and subsequently repurchased by the corporation c. ownership rights in other companies held by the corporation for investment purposes d. shares of a corporation's stock held by the board of directors