Match Each of the Definitions That Follow with the Appropriate

question 126

Short Answer

Match each of the definitions that follow with the appropriate investment term (a-i).
a.equity method
b.parent company
c.subsidiary company
d.consolidated financial statements
e.fair value
f.unrealized gain or loss on investments.g.valuation allowance for investments
h.amortized cost
i.fair value method
-the market price that would be received if an investment were sold

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Definitions:

Accrued Interest

Interest that has been earned but not yet received in cash or recorded as an asset on the balance sheet.

Note Receivable

A financial asset representing a written promise to receive a specific amount of money on a certain date or on demand.

Payment of Account

The process of settling a liability or an amount owed to a creditor, vendor, or supplier by making a cash or electronic payment.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated as sales divided by average accounts receivable.