Shared Flashcard Set

Details

Principles of Financial Accounting
Chapter 16
14
Accounting
Undergraduate 2
05/28/2011

Additional Accounting Flashcards

 


 

Cards

Term
Available-for-sale securities
Definition
Debt or equity securities that do not meet the criteria for trading or held-to-maturity securities.
Term
Consolidated financial statements
Definition
Financial statements that reflect the combined operations of a parent company and its subsidiaries.
Term
Control
Definition
An investing company's abilitiy to decide the operating and financial policies of another firm because it owns more than 50 percent of that firm's voting stock.
Term
Cost-adjusted-to-market method
Definition
A method of accounting for available-for-sale securities at cost adjusted for changes in the securities' market value.
Term
Eliminations
Definition
Entries made on consolidated work sheets to eliminate transactions between parent and subsidiary companies.
Term
Equity Method
Definition
A method of accounting for influential but noncontrolling long-term investments in which the investment is initially recorded at cost and is then adjusted for the investor's share of the company's net income or loss and for dividends.
Term
Goodwill
Definition
The excess of the purchase price of business over the fair market value of its net assets.  Also called goodwill from consolidation.
Term
Held-to-maturity securities
Definition
Debt securities that management intends to hold until their maturity date.
Term
Insider trading
Definition
Making use of inside information for personal gain.
Term
Marketable securities
Definition
Investments with a maturity of more than 90 days but that are inteded to be held only until cash is needed to pay current obligaions.  Also called short-term investments.
Term
Minority interest
Definition
An amount recorded on a consolidated balance sheet that represents the hodings of owners of less than 50 percent of a subsidiary's voting stock.
Term
Multinational or transnational corporations
Definition
Companies that expand by establishing or buying foreign subsidiaries.
Term
Parent company
Definition
A company that has a controlling interest in another firm.
Term
Purchase method
Definition
A method of accounting for controlling investments in which similar accounts from the parent's and subsidiaries' statements are combined.
Supporting users have an ad free experience!