Solved

Match Each of the Following Investment Terms with the Appropriate

Question 115

Matching

Match each of the following investment terms with the appropriate definition below.

Premises:
Cost Method
Consolidated Financial Statements
Dividend Yield
Unrealized Gain or Loss on Investments.
Subsidiary Company
Amortized Cost
Equity Method
Fair Value
Valuation Allowance for Investments
Parent Company
Responses:
Appropriate method for accounting for small stock investments.
Recognition of changes in the fair value of short-term investments.
Combined reporting of a corporation and other corporations it controls.
Measurement of the rate of return to stockholders based on cash dividends.
A corporation controlled by another corporation that owns all or the majority of its voting stock.
The market price that would be received if an investment were sold.
The method for accounting for investments of 20 - 50% in another company’s stock.
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.
The value assigned to held-to-maturity securities.

Correct Answer:

Cost Method
Consolidated Financial Statements
Dividend Yield
Unrealized Gain or Loss on Investments.
Subsidiary Company
Amortized Cost
Equity Method
Fair Value
Valuation Allowance for Investments
Parent Company
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