PLEASE HELP WITH THESE MULTIPLE CHOICE PROBLEMS!! THANK YOU!!

QUESTION 1:

Which of the following are typical motivations for intercorporate investments. (Indicate ALL that apply.)

a.	A company purchases debt or equity securities of another company as a temporary investment of excess cash or as part of a longer-term risk-adjusted portfolio, expecting to receive dividends and capital gains
b.	A company makes strategic investments to develop relationships with suppliers or customers or to gain access to new product or geographic markets
c.	A company acquires a significant or controlling interest in a foreign company in order to circumvent the requirements of the U. S. Foreign Corrupt Practices Act
d.	A company obtains a controlling interest in another company to facilitate activity along its supply chain

QUESTION 2:

Only investment in debt securities may be accounted for as held-to-maturity investments, under U.S. GAAP.

True

False

QUESTION 3:

When the SEC staff takes a position on various accounting issues they issue it as a:

a.	Generally Accepted Auditing Standard
b.	FASB Statement
c.	Financial Reporting Release
d.	Staff Accounting Bulletin.

QUESTION 4:

Under U.S. GAAP, Companies that own a controlling investment in the voting common stock of another company must account for its investment in the investee on the Parent companys books:

a.	Using the complete equity method
b.	Using either the cost method or the complete equity method
c.	However management chooses
d.	Using the cost method.