Question

Question 3 Match the term with the appropriate description Securities held to maturity Unrealized holding gains and losses Impairment of securities available for sale Consolidation Wow! This is a LOT of information to remember! A. Requires recognition in the income statement if judged to be other than temporary. B. Used when investor has effective control of investee C. Reported in the income statement for trading securities D. How I'm feeling right now. :) E. Requires positive intent and ability

Answer 1

1: Securities held to maturity: Requires positive intent and ability

(The investor should have the intent and ability to hold the investment till maturity)

2: Unrealized holding gains and losses : Reported in the income statement for trading securities

(The unrealized holding gains and losses are those which remain unrealized but have occurred. These are reported in the income statement for trading securities)

3: Impairment of securities available for sale: Requires recognition in the income statement if judged to be other than temporary.

(If the impairment is permanent, it should be accounted for in the income statement)

4: Consolidation: Used when investor has effective control of investee

(This means combining the accounts of two entities when one has control over the other)

5: Wow: How I'm feeling right now.

Wow is a term used for expression of feeling