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Match the Items Below

Question 188

Matching

Match the items below

Premises:

Responses:

Valuation allowance account.

Available-for-sale securities

Amount for which a security could be sold.

Subsidiary company

Ownership of more than 50% of another company's common stock.

Equity method

Securities that may be sold in the future.

Unrealized Gain or Loss—Equity

Investments that are not readily marketable and not intended to be converted into cash within the next year.

Fair value

Financial statements that present the total assets and liabilities controlled by the parent and the total revenues and expenses of the subsidiary companies.

Consolidated financial statements

The Stock Investments account is adjusted for net income and dividends received.

Controlling interest

A company that owns more than 50% of the common stock of another entity.

Fair Value Adjustment

Entity whose stock is owned by the parent company.

Parent company

An account that is reported in the stockholders' equity section.

Long-term investments

Premises:

Valuation allowance account.

Amount for which a security could be sold.

Ownership of more than 50% of another company's common stock.

Securities that may be sold in the future.

Investments that are not readily marketable and not intended to be converted into cash within the next year.

Financial statements that present the total assets and liabilities controlled by the parent and the total revenues and expenses of the subsidiary companies.

The Stock Investments account is adjusted for net income and dividends received.

A company that owns more than 50% of the common stock of another entity.

Entity whose stock is owned by the parent company.

An account that is reported in the stockholders' equity section.

Responses:

Available-for-sale securities

Subsidiary company

Equity method

Unrealized Gain or Loss—Equity

Fair value

Consolidated financial statements

Controlling interest

Fair Value Adjustment

Parent company

Long-term investments

Correct Answer:

Premises:

Responses:

Valuation allowance account.

Amount for which a security could be sold.

Ownership of more than 50% of another company's common stock.

Securities that may be sold in the future.

Investments that are not readily marketable and not intended to be converted into cash within the next year.

Financial statements that present the total assets and liabilities controlled by the parent and the total revenues and expenses of the subsidiary companies.

The Stock Investments account is adjusted for net income and dividends received.

A company that owns more than 50% of the common stock of another entity.

Entity whose stock is owned by the parent company.

An account that is reported in the stockholders' equity section.