Match the Following Terms to Their Correct Definition

question 39

Multiple Choice

Match the following terms to their correct definition:
-Device that facilitates combining the financial statements of the investor and investee companies

• 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:

General Journal

A primary accounting record where financial transactions are initially recorded in chronological order.

Ledger

A comprehensive collection of a company's accounts, including assets, liabilities, equity, revenue, and expenses, used for tracking financial transactions.

Debit Side

The left-hand side of a ledger account, recording increases in assets or expenses and decreases in liabilities or equity.

Account

A record in the general ledger that is used to collect and store debit and credit transactions.