Acct. 2 Test 2, Questions and answers, 100% Accurate, VERIFIED.

Acct. 2 Test 2, Questions and answers, 100% Accurate, VERIFIED. in accounting for stock investments between 20% and 50 %, the ____ method is used equity for accounting purposes, the method used to account for long term investments in common stock is determined by the extent of an investor's influence on the operating and financial affairs of the investee under the equity method of accounting for long term investments in common stock, when a dividend is received from the investee company the stock investment account is decreased changes in the fair market value of investments are reported as part of net income for trading securities short term stock investments should be valued on the balance sheet at fair value reporting investments at fair value is applicable to both debt and stock securities what would be reported under Other Revenues and Gains Unrealized gain (loss) on available for sale securities statement of cash flows reports each of the following ezcept cash sales lending money and collecting the loans are investing activities the cash effects of transactions that create revenues and expenses are operating activities the aquisition of land by issuing common stock is a noncash transaction which is not reported in the body of a statement of cash flows the order of presentation of activities on the statement of cash flows is operating, investing, financing cash receipts from interest and dividends are classified as operating activities what does not affect cash during a period write off of an uncollectible account where common stock issued for cash would appear where in the indirect statement of cash flows financing activities if accounts receivable increased during the period revenues on accrual basis are greater than revenues on cash basis