Matching Questions 116. Match the following terms with the appropriate definitions. 1. Investments in equity and debt securities that are not readily convertible to cash or are not intended to...

1. Investments in equity and debt securities that are not readily convertible to cash or are not intended to be converted to cash in the short term

Subsidiary

2. A change in market value that is not yet realized through an actual sale

Parent company

3. A company that owns a more than 50% controlling interest in a subsidiary

Return on total assets

4. Debt securities that a company intends and is able to hold until maturity

Held-to-maturity securities

5. Debt and equity securities not classified as trading or held-to-maturity

Equity method

6. A corporation controlled by another company when the parent owns more than 50% of the subsidiary's voting stock

Available-for-sale securities

7. A measure of operating efficiency, computed as net income divided by average total assets

Trading securities

8. An accounting method for long-term investments in equity when the investor has significant influence over the investee

Unrealized gain or loss

9. Financial statements that show the financial position, results of operations and cash flows of all entities under the parent's control, including those of any subsidiaries

Long-term investments

10. Debt and equity securities that a company intends to actively manage and trade for profit

Consolidated financial statements