1. The correct classification of an investment is based upon the for which it was acquired.

2. The method is used to account for held-to-maturity investments.

3. The category is used to account for securities that are neither trading nor held to maturity.

4. The available sale securities are reported on the balance sheet at .

5. Changes in the value of available for sale securities are reported in  .

6. The approach to measuring income is generally employed in modern financial reporting.

7. When bonds are sold at more than face value, the difference between the issue price and the face value is commonly referred to as a .

8. The interest rate printed on the face of a bond certificate is called the , whereas the actual interest rate is the .

9. Premium amortization causes interest income to .

10. Bond investment amortization causes investment income to be increased beyond the amount of cash received.

11. The amortization of the premium on an investment in bonds will cause the investment in bonds account to .

12. A company whose shares were acquired by an investor is known as the .

13. The equity method is appropriate for accounting for investments where the investor has acquired over percent of the voting stock of another company.

14. The equity method focuses principally on changes in the investee's , rather than on changes in the market value of the investee's stock.

15. With the equity method,  and cause a decrease in the Investment account.

16. Consolidation is required for greater than 50% owned .

17. The equity of a consolidated entity will tend to mirror the equity of the  .

18. When a subsidiary is acquired at a premium over the fair value of the identifiable assets, will appear in the consolidated statements   .

19. The account will appear in the parent's separate balance sheet, but not the consolidated balance sheet.

20. If the parent and sub have done business with one another, adjustments will be needed to avoid reporting transactions