Chapter 16 Flashcards
(15 cards)
securities that are held with the intent of selling them sometime in the future
available for sale securities
financial statements that present the assets and liabilities controlled by the parent company and the total revenues and expenses of the subsidiary companies
consolidated financial statement
ownership of more than 50% of the common stock of another entity
controlling interest
accounting method in which the investment in common stock is recorded at cost, and revenue is recognized only when cash dividends are received
cost method
investments in government and corporation bonds
debt investments
accounting method in which the investment in common stock is initially recorded at cost, and the investment account is then adjusted annually to show the investor’s equity in the investee
equity method
amount for which a security could be sold in a normal market
fair value
debt securities that the investor has the intent and ability to hold to their maturity date
held to maturity securities
group of stocks and/or debt securities in different corporations held for investment purposes
investment portfolio
investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer
long term investmetns
company that owns more than 50% of the common stock of another entity
parent company
investments that are readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longer
short term investments
investments in the capital stock of other corporations
stock investments
company in which more than 50% of its stock is owned by another company
subsidiary (affiliated) company
securities bought and held primarily for sale in the near term to generate income on short term price differences
trading securities
