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26 Cards in this Set
- Front
- Back
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The account stock investment is? |
A long term investment account |
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If a company aquires a 40% common stock interest in another company? |
The equity method is usually applicable |
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Financing activities involve? |
Long-term liability and stockholders equity items |
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The statement of cash flows is prepared from all of the following except? |
The adjusted trial balance |
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Long term investments |
Is an account on the asset side of a company balance sheet. Stocks, bonds, real estate, and cash. |
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Parent company |
A company that owns or controls at least one newer or smaller company |
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Fair value adjustment |
It reassess the fair value when there is a considerable difference between that figure and the current book value |
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Controlling interest |
The holding by one person or group of a majority of the stocks of a business. |
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Consolidated financial statements |
A report on the financial situation of a holding company and its wholly owned subsidiaries presented in one set of figures |
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Fair value |
Is a sale price agreed by a willing buyer and seller |
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Equity method |
Is the process of treating equity investments in associate companies process of treating equity investments in associate companies of treating equity investments in associate companies |
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Investing activities include ? |
Collecting cash on loans |
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Investing activities include ? |
Collecting cash on loans |
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The sale of land for cash would be classified as a cash inflow from an investing activity? |
True |
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Cash flow from investing activities is considered the most important category on the statement of cash flows because ....
True or false |
False |
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Corporations purchase investments in debt or stock securities generally for one of two reasons
True or False |
False |
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Corporations purchase investments in debt or stock securities generally for one of two reasons
True or False |
False |
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When debt investments are sold the gain or loss is the difference between the set proceeds from the sale ?
True or False |
False |
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Most important category on the statement of cash flows is ? |
Operating activities |
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If a company has both inflow and outflow of cash ? |
Cash inflow and outflow should be reported separately in the investing activities section |
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When a company hold stock of several different corporations the group of securities is? |
Invest portfolio |
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The order of presentation of activities on the statement of cash flow is ? |
Operating, investing and financing |
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In addition to the three basic financial statements which of the following is also required financial statement |
The statement of cash flows |
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The statement of cash flow |
summarizes the operating financing and investing activities of an entity |
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The primary purpose of the statement of cash flow is to |
Provide information about the receipts and cash payments during a period |
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Which of the following is the correct matching concerning an investors influence? |
Between 20%, 50% Significant |
