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Zoom Shoes Inc. has 115,000 shares of stock outstanding. GAS Running Company owns 35,000 shares of Zoom Shoes Inc. Which of the following is true? O a. GAS Running Company is required to combine the financial statements of Zoom Shoes Inc. and report as a single company, O b. Zoom Shoes Inc. is the parent company. OC. GAS Running Company is required to use the equity method for this investment O d. GAS Running Company is the subsidiary company, Unrealized Gain on Available-for-Sale Securities O a. is not significant enough to be reported. O b. is reported on the balance sheet. O c. is reported on the income statement separately or as a part of Other Income and Od. is reported on the income statement in the operating expenses area. Cash is generally invested in long-term investments for all of the following reasons except O a. to earn interest revenue. O b. to reduce costs. O c. for the integration of operations. O d. to finance expansion. All of the following are disadvantages of fair value use except O a. comparability between companies may be impacted by different fair value measurements. O b. fair values can only be used on balance sheet accounts. O c. fair values may not be readily obtainable. O d. fair values may cause more fluctuations as changes occur from period to period. At the end of the year, Benton Corporation's short-term investment has a fair value of $47,500. Benton bought the investment for $50,000. An adjusting entry at the end of the year would include a O a. debit to Unrealized Loss on Trading Investments of $2,500. O b. debit to Valuation Allowance for Trading Investment of $2,500. O c. credit to Valuation Allowance for Trading Investment of $47,500. O d.credit to Unrealized Gain on Trading Investments of $2,500. The cumulative effect of other comprehensive income is reported on the balance sheet as O a. retained earnings. O b. cumulative paid-in capital. O c. accumulated other comprehensive income. O d. All of these choices are correct. Which of the following statements is not typically a reason why a company may purchase another company's stock? O a. Developing or maintaining business relationships O b. Earning a return on excess cash O c. Gaining control of another company's operations O d. Assisting in increasing the other company's stock price Trading investments are O a. decreased by the reported net income of the investee. O b. reported at fair value. O c. increased by the reported net income of the investee. O d. reported at amortized cost in the balance sheet. Dividend yield measures the rate of return to stockholders based on O a. retained earnings. Ob. stock dividends. O c. cash dividends. O d. None of these choices are correct. section of the balance sheet. Temporary investments in debt and equity securities are reported in the O a. Current Liabilities O b. Current Assets O c. Other Revenue O d. Long-term Assets