Match Each of the Definitions That Follow with the Appropriate

question 134

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
-recognition of changes in the fair value of short-term investments

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Definitions:

Total Debt Ratio

A measure of a company's financial leverage, calculated by dividing its total liabilities by its total assets.

Current Ratio

A financial metric indicating how capable a company is of meeting its short-term liabilities using its available assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle.