Solved

Match Each of the Definitions That Follow with the Appropriate

Question 120

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:

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
Related Questions

Q113: Skyline, Inc. purchased a portfolio of

Q114: The cost and fair value of

Q115: Sutton Company purchased 10% of the outstanding

Q116: During the first year of operations,

Q117: Journalize the entries to record the following

Q118: Prepare the journal entries for the

Q119: Following are data for the trading

Q121: Match each of the definitions that follow

Q153: Discuss the appropriate financial treatment when an

Q159: Ramiro Company purchased 40% of the outstanding

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents