Matching Questions 116. Match the following terms with the appropriate definitions: 1. A corporation controlled by another company when the parent owns more than 50% of the...

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

Long-term investments

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

Subsidiary

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

Unrealized gain or loss

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

Consolidated financial statements

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

Parent company

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

Available-for-sale securities

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

Held-to-maturity securities

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

Trading securities

9. 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.

Return on total assets

10. 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.

Equity method