For Accounting Purposes, the Method Used to Account for Long-Term

Multiple Choice

For accounting purposes, the method used to account for long-term 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 on the investee's operating decisions and policies.
C) whether the stock has paid dividends in the past years.
D) whether the dividend declared is a cash or stock dividend.