26) The equity method of accounting for investments a. requires the investment

26) The equity method of accounting for investments
a. requires the investment be increased by the dividends paid by the investee
b. requires the investment be increased by the reported net income of the investee
c. requires the investment to be reported at its original cost
d. requires a year-end adjustment to revalue the stock to lower of cost or market 27) Financing activities include
a. acquiring investments. b. lending money. c. issuing debt.
d. acquiring long-lived assets.
28) Budget preparation is best determined in a top-down managerial approach.
a. true
b. false 29) The responsibility for coordinating the preparation of a master budget should be assigned to the CEO of a firm.
a. true
b. false