The investor should generally use the equity method of accounting for the investee if the investor owns what percentage of the outstanding stock of the investee? A. any percentage greater than 50% B. 20%-50% C. any percentage greater than 60% D. 0%-15% The unrealized Gain/Loss on Investment account may appear on which financial statement? A. the balance sheet as part of the shareholders' equity B. the income statement under the "other income" section O C. the balance sheet under the "liabilities" section OD. the balance sheet under the "assets" section as a contra asset If an investor company owns between 20% and 50% of the common shares of another business, cash dividends received from the investee company are generally recorded by the investor company by A. increasing the value of the investor's Investment account B. decreasing the value of the investor's Investment account O C. decreasing the investor company's Common Shares account OD. increasing the Dividend Revenue account Corporations invest in a short-term investment to A. park cash temporarily OB. generate a higher profile C! sell it for more than its cost OD. invest excess cash temporarily and to increase income Under the equity method of accounting, the investor will A. reduce the Investment account to record dividends and income of the investee B. increase the Investment account for investee dividends, and reduce the Investment account to record investee income C. increase the Investment account to record dividends and income of the investee O D. reduce the Investment account for investee dividends and increase the Investment account to record investee income When a premium on a bond investment is amortized by the company holding the investment A. Interest Revenue will be debited B. companies normally credit a separate account called Premium on Investments C. the amount of cash received as an interest payment will be reduced D. the amount of cash received as an interest payment will be increased In present value calculations, the process of determining the present value of a single sum of money is called . O A. negotiating O B. discounting O C. allocating OD. pricing Long-term investments include which of the following? O A. marketable securities B. shares and bonds that the investor expects to hold for longer than one year OC. shares and bonds that the investor expects to convert to cash within one year O D. represent accounts receivable and notes receivable on the balance sheet