Match the Following Terms with the Appropriate Definitions

question 145

Multiple Choice

Match the following terms with the appropriate definitions.
-Debt and equity securities that a company intends to actively manage and trade for profit.

• A)Available-for-sale securities
• B)Equity method
• C)Parent company
• D)Consolidated financial statements
• E)Long-term investments
• F)Unrealized gain (loss)
• G)Trading securities
• H)Return on total assets
• I)Subsidiary
• J)Held-to-maturity securities

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses, taxes, and losses from its total revenues, indicating its profitability.

Purchase Returns

Goods returned by the purchaser to the supplier due to defects, excess supply, or other reasons, often resulting in a refund or credit.

Cost of Goods Sold

The direct financial costs required for the manufacture of a company’s products, involving materials and labor expenses.

FIFO

An accounting method for valuing the cost of goods sold that assumes the earliest items purchased are the first to be sold.