Match Each of the Definitions That Follow with the Appropriate

question 43

Multiple Choice

Match each of the definitions that follow with the appropriate investment term (a-j) .
-A corporation owning all or the majority of the voting stock of another corporation

• 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)Dividend yield
• I)Amortized cost
• J)Cost method

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Definitions:

Composite Unit

A grouping of assets or costs that are combined and treated as a single unit for accounting or valuation purposes.

Variable Costs

Expenses that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Break Even

The point at which total costs and total revenues are equal, resulting in no net loss or gain.