Match the Items Below by Entering the Appropriate Code Letter

question 23

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
A. Available-for-sale securities F. Consolidated financial statements
B. Subsidiary company G. Controlling interest
C. Equity method H. Market Adjustment
D. Unrealized Gain or Loss-Equity I. Parent company
E. Fair value J. Long-term investments
____ 1. Valuation allowance account.
____ 2. Amount for which a security could be sold.
____ 3. Ownership of more than 50% of another company's common stock.
____ 4. Securities that may be sold in the future.
____ 5. Investments that are not readily marketable and not intended to be converted into cash within the next year.
____ 6. Financial statements that present the total assets and liabilities controlled by the parent and the total revenues and expenses of the subsidiary companies.
____ 7. The Stock Investments account is adjusted for net income and dividends received.
____ 8. A company that owns more than 50% of the common stock of another entity.
____ 9. Entity whose stock is owned by the parent company.
____ 10. An account that is reported in the stockholders' equity section.

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Definitions:

Arousal Theory

A theory in psychology that proposes individuals are motivated to maintain an optimal level of arousal.

Optimal Level

The most favorable or desirable degree of efficiency, concentration, or condition for a particular process or function.

Stimulation

The action of arousing interest, excitement, or activity in someone or something, or the condition of being stimulated.

Expectancy

A belief or anticipation regarding the likelihood that a specific outcome will occur as a result of certain actions or behaviors.