Match the following terms to their correct definition:
A. Represents an ownership interest in a corporation, usually common stock
B. Exists when another entity owes the security holder some combination of interest and principal
C. Situation where the investor owns less than 20% of the common stock of another company and therefore is not attempting to exert influence over the operating and financial policies of the investee
D. Situation where the investor owns 20% to 50% of the outstanding common stock of the investee and is therefore assumed to possess significant influence over the operating and financial policies of the investee
E. Situation where the investor owns over 50% of the outstanding common stock and is therefore deemed to own the investee
F. Name given to an investor who owns over 50% of the outstanding common stock of the investee
G. Name given to the investee when an investor owns over 50% of the investee's outstanding common stock
H. Equity or debt investments that management intends to sell in the near term, typically within a single month
I. Equity and debt investments that management intends to sell in the future, but not necessarily in the near term
J. Debt investments that management intends to hold until the debt contract requires the borrower to repay the debt in its entirety
K. Method of accounting for all investments in debt securities that are classified as held-to-maturity securities
L. Method of accounting required for all passive investments in which the investment is valued at the price for which the investor could sell the asset in an orderly transaction between market participants
M. Result when the value of securities must be written up or down to fair market value at the balance sheet date, a process referred to as "marking to market"
N. Method of accounting for investments where the investor possesses significant influence (20% to 50% common stock ownership) over the operating and financial policies of the investee
O. Device that facilitates combining the financial statements of the investor and investee companies
P. Any voting stock not held by the parent in situations where consolidation is required because the investor acquires between 50% and 100% of the investee's stock
Q. Any transaction or set of transactions that brings together two or more previously separate entities to form a single accounting entity
R. An intangible asset arising from attributes that are not separable from the business-such as customer satisfaction, product quality, skilled employees, and business location
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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