Matching
Match the items below by entering the appropriate code letter in the space provided.
Premises:
Debt instrument held to earn interest income that does not mature within the next year.
Accounting entries are required to adjust the investment's carrying value for any increase and decrease in its fair value.
Financial statements that present the assets and liabilities of the parent and the subsidiary company.
The Equity Investment in Common Shares account is adjusted for profit and dividends received.
An investment in equity securities that is purchased to influence or control another.
Securities that are held for resale in the near future, hopefully at a gain
Amount for which an investment could be sold for in the market.
Entity whose shares are owned by the parent company.
The issuer of a bond
Normally exists when the investor owns 20% or more of the investee's voting shares.
An investment in which there is intention of establishing and maintaining a long-term operating relationship.
The investor has control over an investee.
Responses:
Fair value
Consolidated financial statements
Investee
Fair Value adjustment
Significant Influence
Trading investments
Equity method
Long-term investment
Strategic investment
Strategic Investment
Subsidiary company
Parent company
Correct Answer:
Premises:
Responses:
Debt instrument held to earn interest income that does not mature within the next year.
Accounting entries are required to adjust the investment's carrying value for any increase and decrease in its fair value.
Financial statements that present the assets and liabilities of the parent and the subsidiary company.
The Equity Investment in Common Shares account is adjusted for profit and dividends received.
An investment in equity securities that is purchased to influence or control another.
Securities that are held for resale in the near future, hopefully at a gain
Amount for which an investment could be sold for in the market.
Entity whose shares are owned by the parent company.
The issuer of a bond
Normally exists when the investor owns 20% or more of the investee's voting shares.
An investment in which there is intention of establishing and maintaining a long-term operating relationship.
The investor has control over an investee.
Premises:
Debt instrument held to earn interest income that does not mature within the next year.
Accounting entries are required to adjust the investment's carrying value for any increase and decrease in its fair value.
Financial statements that present the assets and liabilities of the parent and the subsidiary company.
The Equity Investment in Common Shares account is adjusted for profit and dividends received.
An investment in equity securities that is purchased to influence or control another.
Securities that are held for resale in the near future, hopefully at a gain
Amount for which an investment could be sold for in the market.
Entity whose shares are owned by the parent company.
The issuer of a bond
Normally exists when the investor owns 20% or more of the investee's voting shares.
An investment in which there is intention of establishing and maintaining a long-term operating relationship.
The investor has control over an investee.
Responses:
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