For Accounting Purposes, the Method Used to Account for Investments

Multiple Choice

For accounting purposes, the method used to account for investments in common stock is determined by

A) the amount paid for the stock by the investor.
B) the extent of an investor's influence over the operating and financial affairs of the investee.
C) whether the stock has paid dividends in past years.
D) whether the acquisition of the stock by the investor was "friendly" or "hostile."