Accounting for long-term investments in equity securities with controlling influence uses the: Multiple Choice Trading method. Controlling method. Investment method. Consolidation method.

The Equity Method of accounting for investments:     a)  Requires the investment asset to increase proportionally with the affiliates net income   b)  Requires the investment asset to decrease proportionally with the affiliates net loss   c)  Requires the investment asset to decrease proportionally with dividends received   d)  All of the above

True or false question

1. Explain the concept of control and its relationship to ownership percentage   2. which criteria do you prefer to use to classify equity investments ( quantitative, qualitative, or a combination of both)? Explain your answer (you may wish to highlight the advantages and disadvantages of each one)