Question 1

An investing company that owns ________ of another (investee)company's voting stock (but not more than 50%)is presumed to have a significant influence over the investee.

Accepted Answer

The answer of An investing company that owns ________ of...

Question 2

A company that is a controlling investor in another company is known as the ________.

Accepted Answer

The answer of A company that is a controlling investor...

Question 3

When one company owns more than 50% of another company's voting stock and has control over the investee company,the investee is called the ________.

Accepted Answer

The answer of When one company owns more than 50%...

Question 4

Long-term investments in available-for-sale securities are reported at their ________ on the balance sheet.

Accepted Answer

The answer of Long-term investments in available-for-sale securities are reported...

Question 5

An investing company that owns more than ________ of another (investee)company's voting stock is presumed to have controlling influence over the investee.

Accepted Answer

The answer of An investing company that owns more than...

Question 6

________ refers to all changes in equity for a period except for those due to investments by and distributions to owners.

Accepted Answer

The answer of ________ refers to all changes in equity...

Question 7

Investments in trading securities are always classified as ________ and are reported as ________ on the balance sheet.

Accepted Answer

The answer of Investments in trading securities are always classified...

Question 8

Long-term investments in held-to-maturity debt securities are accounted for using the ________.

Accepted Answer

The answer of Long-term investments in held-to-maturity debt securities are...

Question 9

If a U.S.company makes a credit sale to a foreign company,the sales price must be translated into dollars as of the date of ________.

Accepted Answer

The answer of If a U.S.company makes a credit sale...

Question 10

Short-term investments in held-to-maturity debt securities are accounted for using the ________.

Accepted Answer

The answer of Short-term investments in held-to-maturity debt securities are...

Question 11

Return on total assets is computed by dividing ________ by ________.

Accepted Answer

The answer of Return on total assets is computed by...

Question 12

________ financial statements show the financial statements of all entities under the parent's control,including all subsidiaries.

Accepted Answer

The answer of ________ financial statements show the financial statements...

Question 13

Investments in equity securities where the investor has a significant,but not controlling influence,are accounted for using the ________ method.

Accepted Answer

The answer of Investments in equity securities where the investor...

Question 14

Investments in equity securities where the investor has a controlling influence are accounted for using the ________.

Accepted Answer

The answer of Investments in equity securities where the investor...

Question 15

________ are debt securities a company intends and is able to hold until the maturity date.

Accepted Answer

The answer of ________ are debt securities a company intends...

Question 16

________ are debt securities that a company intends to actively manage and trade for a profit.

Accepted Answer

The answer of ________ are debt securities that a company...

Question 17

Match between columns
                        Premises: Debt securities that a company intends and is able to hold until maturity.
Debt securities not classified as trading or held-to-maturity.
Debt securities that a company intends to actively manage and trade for profit.
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 company that owns more than 50% controlling interest in a subsidiary.
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.
Change in fair value that is not yet realized through an actual sale.
A measure of financial performance,computed as net income divided by average total assets.
Financial statements that show the financial statements of all entities under the parent's control,including all subsidiaries.

Accepted Answer

The Answer of Return on total assets and Long-term investments is...

Quiz 26: Investments