The various terms are used here. The terms that are used here are – a. Subsidiary – A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership. b. Parent – A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary. c. Interest revenue – It is the revenue earned on the debt securities. The debt securities can be available-for-sale as well long term d. Current assets – The assets which are held for a short-period. e. Fair value – It is the market value of something at the prevailing time. Fair value if used to record available-for-sale securities on the balance sheet. f. Equity method – This method is used in case, a company purchased investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee. The mentioned terms have been discussed. To complete: The descriptions by filling in the blanks using the terms given. Given terms – a. Subsidiary b. Parent c. Interest revenue d. Current e. Fair value f. Equity method

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Answer 1

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 12QS

To determine

Concept Introduction:

The various terms are used here.

The terms that are used here are $-$

a. Subsidiary $-$

A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership.

b. Parent $-$

A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary.

c. Interest revenue $-$

It is the revenue earned on the debt securities. The debt securities can be available-for-sale as well long term

d. Current assets $-$

The assets which are held for a short-period.

e. Fair value $-$

It is the market value of something at the prevailing time. Fair value if used to record available-for-sale securities on the balance sheet.

f. Equity method $-$

This method is used in case, a company purchased investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee.

The mentioned terms have been discussed.

To complete:

The descriptions by filling in the blanks using the terms given.

Given terms $-$

a. Subsidiary

b. Parent

c. Interest revenue

d. Current

e. Fair value

f. Equity method

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Answer 2

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Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 12QS

To determine

Concept Introduction:

The various terms are used here.

The terms that are used here are $-$

a. Subsidiary $-$

A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership.

b. Parent $-$

A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary.

c. Interest revenue $-$

It is the revenue earned on the debt securities. The debt securities can be available-for-sale as well long term

d. Current assets $-$

The assets which are held for a short-period.

e. Fair value $-$

It is the market value of something at the prevailing time. Fair value if used to record available-for-sale securities on the balance sheet.

f. Equity method $-$

This method is used in case, a company purchased investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee.

The mentioned terms have been discussed.

To complete:

The descriptions by filling in the blanks using the terms given.

Given terms $-$

a. Subsidiary

b. Parent

c. Interest revenue

d. Current

e. Fair value

f. Equity method

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 12QS

To determine

Concept Introduction:

The various terms are used here.

The terms that are used here are $-$

a. Subsidiary $-$

A subsidiary is the company whose shares are bought by another company. But the purchasing company must buy shares more than 50% of ownership.

b. Parent $-$

A parent company is the company shares of the other company more than 50% of ownership. The company whose shares are bought by another company is treated as subsidiary.

c. Interest revenue $-$

It is the revenue earned on the debt securities. The debt securities can be available-for-sale as well long term

d. Current assets $-$

The assets which are held for a short-period.

e. Fair value $-$

It is the market value of something at the prevailing time. Fair value if used to record available-for-sale securities on the balance sheet.

f. Equity method $-$

This method is used in case, a company purchased investment ranging from 20 % to 50 % of ownership and that gives a significant control to the investor over the investee.

The mentioned terms have been discussed.

To complete:

The descriptions by filling in the blanks using the terms given.

Given terms $-$

a. Subsidiary

b. Parent

c. Interest revenue

d. Current

e. Fair value

f. Equity method

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Chapter 15, Problem 12QS

To determine