Fair-value method of accounting for marketable securities

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Reference no: EM131293637

Which of the following statements is not true of the fair-value method of accounting for marketable securities?

a. The investment account is recorded at current fair value on the balance sheet.

b. Interim changes in the investments’ fair value may or may not affect income depending on the securities’ classification.

c. This method is used when the reporting company generally owns less than 20% of the investee company.

d. Dividends are treated as a return of the capital invested.

e. None of the above.

Reference no: EM131293637

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