Question: Question 1 7 4 pts A company has been using the fair - value method to account for its investment. The company now has the

Question

17

4

pts

A company has been using the fair

-

value method to account for its investment. The company now has the ability to significantly influence the investee and the equity method has been deemed appropriate. Which of the following statements is true?

Future dividends will continue to be recorded as revenue.

A prospective change in accounting principle must occur.

A cumulative effect change in accounting principle must occur.

A retrospective change in accounting principle must occur.

The investor will not receive future dividends from the investee.

Question 17 4 pts A company has been using the fair-value

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