Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)A. Fair Value Adjustment G. Available-for-sale debt securities B. Statement of Cash Flows H. Equity holdings between 20% and 50% C. Trading debt securitiesI. Temporary differences, deferred tax assetD. Equity holdings less than 20% J. Permanent differences E. Held-to-maturity debt securities K. Temporary differences, deferred tax liability F. Statute of Limitations L. Equity holdings more than 50% ____ 1. Premiums paid on life insurance of officers (company is the beneficiary).____ 2. Amortized cost; unrealized holding gains or losses not recognized; interest when earned.____ 3. Consolidation of financial statements; parent and subsidiary company income or loss combined.____ 4. Estimated future warranty costs.____ 5. Represents the increase in taxes refundable (or saved) in future yearsas a result of deductible temporary differences existing at the end of the current year.____ 6. Comparative balance sheets.____ 7. Fair value; interest is recognized as revenue; unrealized holding gains and losses are not recognized in income but in other comprehensive income, as a separate component of stockholder’s equity.____ 8. Long-term construction contracts.____ 9. Installment sales.____ 10. Operating, Investing and Financing activities.____ 11. Excess tax depreciation over accounting depreciation.____ 12. Result from items that (1) enter into pretax financial income but never into taxable income or (2) enter into taxable income but never into pretax financial income. ___ 13. Fair value valuation; dividends are recognized as revenue – unrealized holding gains or losses are included in net income. ____ 14. Fair value; unrealized holding gains or losses recognized in net income; interest when earned. ____ 15. Represents the increase in taxes payable in future years as a result of taxable temporary differences existing at the end of the current year. ____ 16. Expenses incurred in obtaining tax-exempt revenue. ____ 17. Advance rental receipts. ____ 18. Direct method and indirect method. ____ 19. Fine for polluting. ____ 20. Equity method; investments recorded at cost, periodically adjusted for share of investee’s income or loss, and decreased by dividends received from the investee, subsequent to investment date.____ 21. Affect only the period in which they occur; they do not give rise to future taxable or deductible amounts; there are no deferred tax consequences to be recognized.____ 22. Litigation accruals.____ 23. Investments accounted for by the equity method (ignore dividends received deduction) for financial reporting purposes but deferred for tax purposes.____ 24. Adjustment of portfolio to fair value - unrealized gain or loss ___ 25. Change in cash.
Match each of the items below with its most appropriately-related “letter” classification. (“Letter” classification may be used more than once, or not at all.)A. Fair Value Adjustment G. Available-for-sale debt securities B. Statement of
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