Match the Following Terms to Their Correct Definition

question 21

Multiple Choice

Match the following terms to their correct definition:
-method of accounting for investments where the investor possesses significant influence (20-50% common shares ownership) 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)goodwill
• I)business combination
• J)minority interest
• K)fair value method
• L)unrealized gains and losses
• M)equity method
• N)consolidation worksheet

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Definitions:

Articular Cartilage

Smooth, white tissue that covers the ends of bones where they come together to form joints.

Fibrous Capsule

A dense tissue layer that encloses a joint or some organs, providing support and protection.

Synovial Membrane

A distinct type of connective tissue that covers the inside of synovial joint capsules and surrounding tendon sheaths, secreting synovial fluid to provide lubrication.

Articular Cartilage

A soft, white layer that envelopes the extremities of bones at their junctures, diminishing friction and soaking up impact.