Multiple Choice Question 95 If the cost method is used to account for an investment in common stock, dividends received should be recorded only when 20% or more of the stock is owned. credited to the Stock Investments account. credited to the Dividend Revenue account. debited to the Stock Investments account. Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 96 Under the cost method of accounting for dividend:s the Investment account is credited when dividends are received. Revenue is credited when dividends are received. the Investment account is credited when the investee reports a net income. Investment Revenue is credited when the investee reports a net income. Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 97 lf 10% of the common stock of an investee company is purchased as an investment, the appropriate method of accounting ior the investments the equity method. the preparation of consolidated financial statements determined by agreement with whomever owns the remaining 90% of the stock. the cost method. Click if you would like to Show Work for this question: Open Show Work CALCULATOR MESSAGE NY INSTRUCTOR FULL SCREEN Multiple Choice Question 98 When the cost method is used to account for a stock investment the carrying value of the investment is affected by the earnings of the investee the dividend distributions of the investee. the earnings and dividend distributions of the investee neither the earnings nor the dividends of the investee. Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 100 The equity method should generally be used to account for an investment in stock when the level of ownership is less than 10%. between 20% and 50%. 10% or more O between 10% and 20%. Click if you would like to Show Work for this question: Open Show Work Question Attempts: 0 of 1 use CALCULATOR MESSAGE MY INSTRUCTOR FULL SCREEN PRINT Multiple Choice Question 101 when an investor owns between 20% and 50% of the common stock of a corporation, it is generally presumed that the investor will prepare consolidated financial statements. has significant influence on the investee and that the equity method should be used to account for the investment. has insignificant influence on the investee and that the cost method should be used to account for the investment. should apply the cost method in accounting for the investment Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 103 The ability of an investing company to affect the operating and financial activities of another company, even though the investor holds less than 50% of the stock, is known as influence and control significant influence. a combination control. Click if you would like to Show Work for this question: Open Show Work