Which the bond investments are classified as

Reference no: EM132816357

Problem 1: When an entity holds between 20% and 50% of the voting power of an investee

A. The investor must use the equity method.

B. The investor should use the equity method unless circumstances indicate that it is unable to exercise significant influence over the investee.

C. The investor must use the cost method

D. The investor must use the fair value method.

Problem 2: When bonds are acquired and classified as financial asset at amortized cost, the bond investments are classified as

A. Temporary investment

B. Current asset

C. Noncurrent investment

D. Partly current and partly noncurrent investments

Reference no: EM132816357

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