Match Each of the Definitions That Follow with the Appropriate

question 9

Multiple Choice

Match each of the definitions that follow with the appropriate investment term (a-j) .
-A balance sheet account where the fair value adjustment for investments is reported

• 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)Dividend yield
• I)Amortized cost
• J)Cost method

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Definitions:

Accounts Receivable

Debts incurred by customers to a company for using or obtaining its goods or services without making immediate payment.

Allowance Method

An accounting technique that adjusts accounts receivable for the estimated uncollectible amounts.

Accounts Receivable

Unsettled charges owed by clients to a company for the consumption or acquisition of goods or services.

Allowance Account

An account used in accrual accounting to estimate future adjustments, such as doubtful accounts or returns, affecting the value of asset accounts.