Match the Following Terms to Their Correct Definition

question 76

Multiple Choice

Match the following terms to their correct definition:
-Situation where the investor owns 20% to 50% of the outstanding common stock of the investee and is therefore assumed to possess significant influence over the operating and financial policies of the investee

• A)equity security
• B)debt security
• C)passive
• D)significant influence
• E)control
• F)parent
• G)subsidiary
• H)trading securities
• I)available-for-sale securities
• J)held-to-maturity securities
• K)amortized cost method
• L)fair value method
• M)unrealized gains and losses
• N)equity method
• O)consolidation worksheet
• P)minority interest
• Q)business combination
• R)goodwill

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Definitions:

Budget Deficit

An economic situation where a government's expenditures exceed its revenue over a specified period of time, leading to borrowing or money printing.

Deficit Financing

The practice of funding government spending by borrowing rather than from taxation, leading to a budget deficit.

Tax Rates

The percentages at which income, property, and sales are taxed by governments, varying for different levels of income or value.

Market For Loanable Funds

The market in which those who want to save supply funds and those who want to borrow to invest demand funds.