Question 1 (3 points) The "equity method" relates to investments that give the investor "significant influence." True False Question 2 (3 points) Dividends received on an "equity method" investment are not included in income. True False Question 3 (3 points) Dividends or interest received on trading securities is reported as income and included in the income statement. True False Question 4 (3 points) Stockholders' equity can consist of both capital stock and retained earnings. True False Question 5 (3 points) Preferred stock has a "preference" ahead of common stock for both dividends and liquidation proceeds. True False