QUESTION 13 The equity method is usually more appropriate for accounting for investments where the puhaseoe not have significant influence over the investee. True False ege : Home QUESTION 17 All of the following are factors contributing to the trend for regulators to adopt accounting principles using fair value concepts except a pressure on regulators to adopt an international set of accounting principles and standards b. hybrid measurement methods within GAAP that conflict with each other c. the ease ofapplying market values to assets and liabilities d. a greater percentage of total assets existing as receivables and securities QUESTION 18 GAAP requires trading and available-for-sale investments to be recorded a. at their fair value b. at their historical cost C. at their market value d. at their net realizable value QUESTION 19 When shares of stock held as an investment are sold, the difference between the proceeds and the carrying amount of the investment is recorded as a(n) 0 a. gain or loss b, paid-in capital addition c. operating income and losses d. prior period adjustment QUESTION 20 Wendell Company owns 28% of the common stock of Porter Company and accounts for the investment using the equity method. Assuming that Wendell Company purchased the stock several years ago, the balance in the investment account would be equal to the cost of the a investment plus the total amount of dividends Wendell has received from Porter since the investment was purchased b. investment plus Wendell's share of Porter's net income earned since the investment was purchased - , investment plus Wendell's share of Porter's net income earned since the investment was purchased minus the total amount of dividend. CWendell has received from Porter since the investment was purchased d. investment only