Subsidiary: Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies. Parent company: The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return. Controlling: Controlling is a special feature of equity security. The investors not only receive the return on investment , but also have control over the affairs of the company in which the investor invests money. To fill: The blank descriptions with appropriate term. 1. The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit. Thus, controlling investors are the parent and the investee is subsidiary . 2. A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee. Thus, the equity security exerts a controlling influence on the investee.

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Answer 1

Question

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

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Answer 2

Question

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

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Answer 3

Question

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

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Answer 4

Question

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

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Answer 5

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

Answer 6

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

Answer 7

Chapter C, Problem 13QS

To determine

Subsidiary:

Subsidiary is a part of parent company. The companies making investment in the parent companies are called the subsidiary companies.

Parent company:

The company having more than 50% control on subsidiary units is parent company. The investee invests in the parent company to earn high percentage of return.

Controlling:

Controlling is a special feature of equity security. The investors not only receive the return on investment, but also have control over the affairs of the company in which the investor invests money.

To fill: The blank descriptions with appropriate term.

1.

The controlling investor is the parent as it controls more than 50% ownership in the company. The company in which the investment is made by the parent company is called the subsidiary unit.

Thus, controlling investors are the parent and the investee is subsidiary.

2.

A long-term investment classified as equity securities with controlling influence implies that the investor can exert a controlling influence over the investee.

Thus, the equity security exerts a controlling influence on the investee.

Answer 8

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Answer 11

Ch. C - Prob. 1MCQ Ch. C - Prob. 2MCQ Ch. C - Prob. 3MCQ Ch. C - Prob. 4MCQ Ch. C - Prob. 5MCQ Ch. C - Prob. 1DQ Ch. C - Prob. 2DQ Ch. C - Prob. 3DQ Ch. C - Prob. 4DQ Ch. C - Prob. 5DQ

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