Assume Company A accounts for its ownership of 25% of Company B stock using the equity method of accounting. Which of the following is the most accurate summary of how this investment will be treated in Company A's financial statements?
O Company A will include not just its own sales, expenses, assets etc., but also 25% of Company B's sales, expenses, assets, etc.in the figures shown in its financial statements
O The Company A balance sheet will show the interest in Company B as a single number, and the interest in Company B's income will appear as one line in the income statemen
O Company A will show its investment in Company B at cost, and will not reflect any earnings from this investment in the income statement.
O Company A will show its investment in Company B at cost, and will reflect any dividends received from this investment in the income statement.