Chapter 10 Flashcards Preview

ACC-225 > Chapter 10 > Flashcards

Flashcards in Chapter 10 Deck (19):
1

Debt security or an equity security where the investor holds less than 20% of the voting stock and is not a trade or held-to-maturity investment

Available-for-Sale Investment

2

Company's change in total stockholders' equity from all sources other than owners' investments and dividends

Comprehensive Income

3

Way to combine the financial statements of two or more companies that have the same owners

Consolidation Accounting

4

Financial statements that combine the balance sheets, income statements, and cash flow statements of the parent company with those of its controlling interest affiliates

Consolidated Statements

5

Equity security where the investor owns 50% or more of the investee's voting stock

Controlling Interest Investment

6

Represents a credit relationship with another company that typically pays interest for a fixed period

Debt Security

7

Represents stock ownership in another company that sometimes pays dividends

Equity Security

8

Price that would be used if the investments were sold on the market

Fair Value

9

A debt security the investor intends to hold unit it matures

Held-to-Maturity Investment

10

Corporation that issued the bond or stock to the investor

Investee

11

Owner of a bond or stock of a corporation

Investor

12

Investments in debt or equity securities the investor intends to hold for longer than one year

Long-Term Investments

13

Company that owns a controlling interest in another company

Parent Company

14

Ratio that measures the success a company has in using its assets to earn income

Rate of Return on Total Assets

15

Share or interest representing financial value

Security

16

Investments in debt and equity securities that are highly liquid and that the investor intends to sell in one year or less

Short-Term Investment

17

Equity security where the investor owns 20% or more but less than 50% of the investee's voting stock

Significant Interest Investment

18

Company that is controlled by another corporation

Subsidiary Company

19

Debt security or equity security where the investor holds less than 20% of voting stock and that the investor plans to sell in the near future

Trading Investment