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 ____
