ACCT1210 - CH. 16

investments held for short-term investment are_

• current assets

• current liability

investments must be _ (readily convertible to cash) to be classified as a current assets

fair-value method or market-value method is used to account for _

• short-term investments

• long-term investment

_ are not income, so fo formal entry is required; a memorandum entry is competed

requires that equity investments with no significant influence be reported at fair value at year end

• ASPE

• IFRS

Any gains/losses is recorder as an unrealized gain or loss in the non-operating section of the company's income statement under "____"

Investor holds from 20% to 50% of the investee's voting shares

• equity method

• fair value method

Investments accounted for using the equity method are often referred to as _

• permanent companies

• affiliated companies

A _ or majority interest is normally the ownership of more than 50% of the investee's voting shares

Long-term share investments by the consolidation method:

The investor is called the

• parent company

• subsidiary