Match the Following Terms to Their Correct Definition

Multiple Choice

Match the following terms to their correct definition:
-Situation where the investor owns less than 20% of the common stock of another company and therefore is not attempting to exert influence over the operating and financial policies of the investee

A) equity security
B) debt security
C) passive
D) significant influence
E) control
F) parent
G) subsidiary
H) trading securities
I) available-for-sale securities
J) held-to-maturity securities
K) amortized cost method
L) fair value method
M) unrealized gains and losses
N) equity method
O) consolidation worksheet
P) minority interest
Q) business combination
R) goodwill