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18 Cards in this Set
- Front
- Back
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available for sale securities |
all investments not classified as held to maturity or trading securities |
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consolidated financial statements |
financial statements of the parent company plus those of more than 50% owned subsidiaries as if the combination were a single legal entity |
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controlling majority interest |
ownership of more than 50% of an investee company's voting stock |
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equity method |
the method used to account for investments in which the investor has 20%-50% of the investee's voting stock and can significantl influence the decisions of the investee |
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fair value |
the amount that a seller would receive on the sale of an investment to w willing purchaser on a given date. available for sale securities are valued at a fair market values on the balance sheet date |
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foreign currency exchange rate |
the measure of one country's currency against another country's currency |
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foreign currency translation adjustment |
the balancing figure that brings the dollar amount of the total libilities and stockholders' equity of the foreign subsidiary into agreement with the dollar amount of its total assets |
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future value |
measures the future sum of money that a given current investment is "worth" at a specified time in the future assuming a certain interest rate |
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held to maturity investments |
bonds and notes that an investor intends to hold until maturity |
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long term investments |
any investment that does no meet the criteria of a short term investment; any investment that the invest expects to hold longer than a year or that is not readily marketable |
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noncontrolling minority interest |
a subsidiary company's equity that is held by stockholders other than the parent company |
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parent company |
an investor company that owns more than 50% of the voting stock of a subsidiary company |
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present value |
the value on a given date of a future payment or series of future payments, discounted to reflect the time value of money |
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short term investments/marketable securities |
investments that a company plans to hold for one year or less and the investment is liquid |
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liquid |
readily convertible to cash |
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strong currency |
a currency whose exchange rate is rising relative to other nation's currencies |
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subsidiary |
an investee company in which a parent company owns more than 50% of the voting stock |
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weak currency |
a currency whose exchange rate is falling relative of other nation's currencies |
