O'Reilly logo

Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

EXERCISE 12-7

Purpose: (L.O. 1 thru 7) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Consolidated financial statements *Intercompany transactions
Controlling interest Investment portfolio
Cost method Long-term investments
Debt investments Non-trading securities
Equity method Parent company
Fair value Short-term investments
Fair value Stock investments
Held-for-collection securities Subsidiary (affiliated) company
*Intercompany eliminations Trading securities

*These items appear in the Appendix 12A in the text.

Instructions

For each item below, enter in the blank the term that is described.

  1. ___________________________________Investments that are readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longer.
  2. ___________________________________Investments that are not readily marketable or that management does not intend to convert into cash within the next year or operating cycle, whichever is longer.
  3. ___________________________________A group of stocks and bonds of different corporations held for investment purposes.
  4. ___________________________________Investments in government and corporation bonds.
  5. ___________________________________Investments in the capital stock of corporations.
  6. ___________________________________An accounting method in which the investment in common stock is recorded at cost and revenue ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required