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Match the Appropriate Definitions with Terms

Question 87

Matching

Match the appropriate definitions with terms.

Premises:
Debt and equity securities not classified as trading or held-to-maturity.
A company that owns a more than 50% controlling interest in a subsidiary.
Change in market value that is not yet realized through an actual sale.
A corporation controlled by another company when the controlling company owns more than 50% of the investee's voting stock.
An accounting method for long-term investments in equity when the investor has significant influence over the investee.
A measure of operating efficiency, computed as net income divided by average total assets.
Debt securities that a company intends and is able to hold until maturity.
Debt and equity securities that a company intends to actively manage and trade for profit.
Financial statements that show the financial position, results of operations, and cash flows of all entities under the parent's control, including those of any subsidiaries.
Investments in equity and debt securities that are not readily convertible to cash or are not intended to be converted to cash in the short term.
Responses:
Held-to-maturity securities
Return on total assets
Consolidated financial statements
Trading securities
Unrealized gain (loss)
Available-for-sale securities
Long-term investments
Equity method
Parent company
Subsidiary

Correct Answer:

Debt and equity securities not classified as trading or held-to-maturity.
A company that owns a more than 50% controlling interest in a subsidiary.
Change in market value that is not yet realized through an actual sale.
A corporation controlled by another company when the controlling company owns more than 50% of the investee's voting stock.
An accounting method for long-term investments in equity when the investor has significant influence over the investee.
A measure of operating efficiency, computed as net income divided by average total assets.
Debt securities that a company intends and is able to hold until maturity.
Debt and equity securities that a company intends to actively manage and trade for profit.
Financial statements that show the financial position, results of operations, and cash flows of all entities under the parent's control, including those of any subsidiaries.
Investments in equity and debt securities that are not readily convertible to cash or are not intended to be converted to cash in the short term.
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