Matching
Match each of the definitions that follow with the appropriate investment term.
Premises:
a corporation owning all or the majority of the voting stock of another corporation
a balance sheet account where the fair value adjustment for investments is reported
a corporation controlled by another corporation that owns all or the majority of its voting stock
the method for accounting for investments of 20–50% in another company’s stock
the market price that would be received if an investment were sold
combined reporting of a corporation and other corporations it controls
recognition of changes in the fair value of short-term investments
the value assigned to held-to-maturity securities
appropriate method for accounting for small stock investments
Responses:
equity method
parent company
subsidiary company
consolidated financial statements
fair value
unrealized gain or loss on investments.
valuation allowance for investments
amortized cost
fair value method
Correct Answer:
Premises:
Responses:
a corporation owning all or the majority of the voting stock of another corporation
a balance sheet account where the fair value adjustment for investments is reported
a corporation controlled by another corporation that owns all or the majority of its voting stock
the method for accounting for investments of 20–50% in another company’s stock
the market price that would be received if an investment were sold
combined reporting of a corporation and other corporations it controls
recognition of changes in the fair value of short-term investments
the value assigned to held-to-maturity securities
appropriate method for accounting for small stock investments
Premises:
a corporation owning all or the majority of the voting stock of another corporation
a balance sheet account where the fair value adjustment for investments is reported
a corporation controlled by another corporation that owns all or the majority of its voting stock
the method for accounting for investments of 20–50% in another company’s stock
the market price that would be received if an investment were sold
combined reporting of a corporation and other corporations it controls
recognition of changes in the fair value of short-term investments
the value assigned to held-to-maturity securities
appropriate method for accounting for small stock investments
Responses:
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