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need help with #2 and #4 2. Companies make investments for various reasons, including: a. Having excess cash or in anticipation of a need for
need help with #2 and #4
2. Companies make investments for various reasons, including: a. Having excess cash or in anticipation of a need for cash at some distant point in the future. b. To exercise significant influence or control over another company. c. Neither a nor b. d. Both a and b. 3. When accounting by an investor for investments in the common stock of another company: a. The equity method is used if the investment is less than 20 %. b. The equity method is used if the investment is greater than 50 %. c. The equity method is used if the investment is between 20% and 50 %. d. The fair value method is used and not the equity method. 4. Bonds are: a. Equity securities issued by corporations. b. Equity securities issued by governments. c. Classified as a current or long-term liability by the investor. d. Classified as a current or long-term asset by the investor Step by Step Solution
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