Solved

Match Each of the Following Definitions with Their Investment Term

Question 132

Matching

Match each of the following definitions with their investment term.

Premises:
Combined reporting of a corporation and other corporations it controls.
The method for accounting for investments of 20 - 50% in another company’s stock.
Measurement of the rate of return to stockholders based on cash dividends.
Recognition of changes in the fair value of short-term investments.
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.
A balance sheet account where the fair value adjustment for investments is reported.
Appropriate method for accounting for small stock investments.
The value assigned to held-to-maturity securities.
A corporation owning all or the majority of the voting stock of another corporation.
Responses:
Parent Company
Valuation Allowance for Investments
Subsidiary Company
Equity Method
Fair Value
Dividend Yield
Consolidated Financial Statements
Unrealized Gain or Loss on Investments.
Amortized Cost
Cost Method

Correct Answer:

Combined reporting of a corporation and other corporations it controls.
The method for accounting for investments of 20 - 50% in another company’s stock.
Measurement of the rate of return to stockholders based on cash dividends.
Recognition of changes in the fair value of short-term investments.
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.
A balance sheet account where the fair value adjustment for investments is reported.
Appropriate method for accounting for small stock investments.
The value assigned to held-to-maturity securities.
A corporation owning all or the majority of the voting stock of another corporation.
Related Questions

Q122: Mangrill, Inc. reported net income for the

Q125: What is comprehensive income? How is it

Q125: Following is data for the available-for-sale securities

Q126: Prepare the journal entries for the following

Q127: Present entries to record the following selected

Q127: (1) Discuss factors contributing to the trend

Q128: The cost and fair value of the

Q129: Prepare the journal entries for the following

Q133: Match each of the following descriptions to

Q161: Discuss the similarities and differences in reporting

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