1. Long-term investments are held for all of the followingreasons except to

a.improve operations by making changes to management

b.reduce expenses

c.meet current cash needs

2.

A company uses cash to pay all of the followingexcept

a.All of these choices are correct.

b.depreciation expense

c.interest to creditors

d.dividends to stockholders

d.stabilize the supply of resources

3.Accounting for the sale of stock is the same for both the costand the equity methods of accounting for investments.

True or false?

4.

The equity method is usually more appropriate for accounting forinvestments where the purchaserdoes not have significant influence overthe investee.

True

False

Answer rating: 100% (QA)

1 The long term investment is not held to meet current cash ... View the full answer