Which of the following statements is true about investments in equity securities?

Group of answer choices:

Unrealized gains and losses from fair value adjustments for equity investments with no significant influence are reported in other comprehensive income.

The appropriate accounting method for equity investments depends on the investor's level of influence over the investee company.

Companies report equity investments with no significant influence on the balance sheet at their historical cost.

Significant influence is typically gained by an investor company owning more than 50% of the equity shares of the investee company.

Question 2

Select the words that complete this sentence:

For equity investments where the investor has significant influence over the investee, the investor's share of the investee's net income is reported as a _______________ to ________________.

Group of answer choices

decrease; other comprehensive income

decrease; net income

increase; net income

increase; other comprehensive income

Question 3

When an investment is acquired, what is the initial reporting basis for all investments in equity securities?

Group of answer choices

Fair market value

Equity value

Discounted present value

Cost

Question 4 20 pts

When a long-term note receivable is issued in exchange for the sale of goods, what is the initial value reported as a debit to Notes receivable?

Group of answer choices:

Amortized value

Present value

Enterprise value

Future value

Question 5

Which of the following inputs provides the least subjective (i.e., most objective, requiring no judgment) method of valuing financial investments?

Group of answer choices:

Historical cost

Level 2 inputs

Level 3 inputs

Level 1 inputs