Matching type. Match these 4 investments into its corresponding definition below 1. Investment in trading securities. 2. Investment in long-term securities. 3. Investment in associates accounted for using the equity method. 4. Investment in subsidiary Definitions: a. to take advantage of flunctuations of prices in the market b. to exert significant influence over another entity so as to obtain benefits from its operations c. To earn investment income such as interest and dividend and additional source of liquidity such as selling investments as the need arises. d. For trading purposes, for speculative purposes, and to manage risk exposures if used as a hedging instrument e. to exert control over another entity thus enabling the investor to be entitled to variable returns from its involvement with the investee f. to earn rental income and for capital appreciation.
Matching type. Match these 4 investments into its corresponding definition below
1. Investment in trading securities.
2. Investment in long-term securities.
3. Investment in associates accounted for using the equity method.
4. Investment in subsidiary
Definitions:
a. to take advantage of flunctuations of prices in the market
b. to exert significant influence over another entity so as to obtain benefits from its operations
c. To earn investment income such as interest and dividend and additional source of liquidity such as selling investments as the need arises.
d. For trading purposes, for speculative purposes, and to manage risk exposures if used as a hedging instrument
e. to exert control over another entity thus enabling the investor to be entitled to variable returns from its involvement with the investee
f. to earn rental income and for capital appreciation.
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