Chapter 10 Flashcards
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
Company’s change in total stockholders’ equity from all sources other than owners’ investments and dividends
Comprehensive Income
Way to combine the financial statements of two or more companies that have the same owners
Consolidation Accounting
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
Equity security where the investor owns 50% or more of the investee’s voting stock
Controlling Interest Investment
Represents a credit relationship with another company that typically pays interest for a fixed period
Debt Security
Represents stock ownership in another company that sometimes pays dividends
Equity Security
Price that would be used if the investments were sold on the market
Fair Value
A debt security the investor intends to hold unit it matures
Held-to-Maturity Investment
Corporation that issued the bond or stock to the investor
Investee
Owner of a bond or stock of a corporation
Investor
Investments in debt or equity securities the investor intends to hold for longer than one year
Long-Term Investments
Company that owns a controlling interest in another company
Parent Company
Ratio that measures the success a company has in using its assets to earn income
Rate of Return on Total Assets
Share or interest representing financial value
Security
