Matching Questions 145. Match the following terms with the appropriate definitions. A. Equity methodB. Available-for-sale securitiesC. SubsidiaryD. Long-term investmentsE. Parent companyF. Return on...

Matching Questions

145. Match the following terms with the appropriate definitions.

A. Equity method
B. Available-for-sale securities
C. Subsidiary
D. Long-term investments
E. Parent company
F. Return on total assets
G. Consolidated financial statements

H. Held-to-maturity securities
I. Trading securities
J. Unrealized gain (loss)

_______ (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.
_______ (2) A corporation controlled by another company when the controlling company owns more than 50% of the investee’s voting stock.
_______ (3) Change in market value that is not yet realized through an actual sale.
_______ (4) 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.
_______ (5) A company that owns a more than 50% controlling interest in a subsidiary.
_______ (6) Debt and equity securities not classified as trading or held-to-maturity.
_______ (7) Debt securities that a company intends and is able to hold until maturity.
_______ (8) Debt and equity securities that a company intends to actively manage and trade for profit.
_______ (9) A measure of operating efficiency, computed as net income divided by average total assets.
_______(10)An accounting method for long-term investments in equity when the investor has significant influence over the investee.