Match the items below by entering the appropriate code letter in the space provided.
A. Available-for-sale securities
B. Subsidiary company
C. Equity method
D. Unrealized Gain or Loss-Equity
E. Fair value
F. Consolidated financial statements
G. Controlling interest
H. Fair Value Adjustment
I. Debt investments
J. Long-term investments
____ 1. Valuation allowance account.
____ 2. Amount for which a security could be sold.
____ 3. Ownership of more than 50% of another company's common stock.
____ 4. Debt securities that may be sold in the future.
____ 5. Investments that are not readily marketable.
____ 6. Financial statements that present the assets and liabilities controlled by the parent and the aggregate profitability of the affiliated companies.
____ 7. The Stock Investments account is adjusted for net income and dividends received.
____ 8. Investments in government and corporation bonds.
____ 9. Entity whose stock is owned by the parent company.
____ 10. An account that is reported in the stockholders' equity section.
Correct Answer:
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2. E 7. C
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