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Accounting MCQs




Question;Match each of the following investment terms with the appropriate definition below.Questions:1- A corporation owning all or the majority of the voting stock of another corporation 2- A balance sheet account where the fair value adjustment for investment is reported 3- A corporation controlled by another corporation that owns all or the majority of its voting stock -4 - The method for accounting for investments 20 -50 % in another company?s stock 5 - The market price that would be received if an investments were sold 6 - Measurement of the rate of the return to stockholders based on cash dividends 7 - Combined reporting of a corporation and other corporations it controls8 - Recognition of changes in the fair value of short-term investment 9 - The value assigned to held-to-maturity securities 10 - Appropriate method for accounting for small stock investments Answers:A) Equity methodB) Parent companyC) Subsidiary companyD) Consolidated financial statementsE) Fair valueF) Unrealized gain or loss on investmentG) Valuation allowance for investmentH) Dividend yieldI) Amortized costJ) Cost method


Paper#38255 | Written in 18-Jul-2015

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