AC311 Chapter 12

equity method

20%-50% ownership apply _____

fair value

debt investments in available-for-sale securities are reported at

decrease

dividends cause the investor's investment int he investee's net assets to _____

face interest rate

interest received is calculated based on

parent

investor who controls another entity though majority stock ownership

fair value through net income method

less than 20% ownership apply ____

consolidation

more than 50% ownership apply___

present value of future cash receipts

the price of a bond is equal to

current assets

trading securities typically are classified in the balance sheet at

net income in the period they occur

under the fair value option, unrealized gains and losses on HTM and AFS investment securities are recognized in

cost

an investment in trading securities should initially be recorded at ____

fair value

at the end of the accounting period, trading securities must be adjusted to _____

cost

at the time of acquisition, debt investments are recorded at ____

held to maturity

carried at amortized cost and unrealized hold gains/losses are not recognized

available for sale

carried at fair value and unrealized hold gains/losses are recognized in other comprehensive income

trading

carried at fair value and unrealized holding gains/losses recognized in net income

subsidiary

company that is controlled by another entity

original cost of the investment

when investments are sold the investment account is credited for the

premium

if a bond sells for more than its maturity value

held to maturity

if an inventory has the positive intent and ability to hold debt security until it matures, it should be classified as

unrealized holding loss

if the market rate of interest rises after a bond is purchased, the bond incurs a ____