Match the Following Terms to Their Correct Definition

Multiple Choice

Match the following terms to their correct definition:
-Situation where the investor owns 20% to 50% of the outstanding common stock of the investee and is therefore assumed to possess significant 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