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Match the Items Below by Entering the Appropriate Code Letter

Question 119

Matching

Match the items below by entering the appropriate code letter in the space provided.

Premises:
The Stock Investments account is adjusted for net income and dividends received.
Entity whose stock is owned by the parent company.
Financial statements that present the assets and liabilities controlled by the parent and the aggregate profitability of the affiliated companies.
Debt securities that may be sold in the future.
Amount for which a security could be sold.
Valuation allowance account.
Investments that are not readily marketable.
Ownership of more than 50% of another company's common stock.
Investments in government and corporation bonds.
An account that is reported in the stockholders' equity section.
Responses:
Debt investments
Long-term investments
Available-for-sale securities
Unrealized Gain or Loss-Equity
Equity method
Controlling interest
Fair Value Adjustment
Fair value
Subsidiary company
Consolidated financial statements

Correct Answer:

The Stock Investments account is adjusted for net income and dividends received.
Entity whose stock is owned by the parent company.
Financial statements that present the assets and liabilities controlled by the parent and the aggregate profitability of the affiliated companies.
Debt securities that may be sold in the future.
Amount for which a security could be sold.
Valuation allowance account.
Investments that are not readily marketable.
Ownership of more than 50% of another company's common stock.
Investments in government and corporation bonds.
An account that is reported in the stockholders' equity section.
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