Problem A (36 points) FILL-IN-THE BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete the following statements by wniting the appropriate words in the Answers column For Answers Investment by one corporation in the controlling interest of another corporation is called a(n) 0. business combination0 Commen Srocl 1. Securities that represent ownership in the company are called 2. Consolidated financial statements combine a parent company with its. 2. The three categories of securities that a company may own that affect their valuation on the balance sheet are: 3-5. 3. 4. 5. 6. 6. The valuation allowance account is used to record Debt investments that a company plans to hold until maturity are classified as 7. Debt and equity securities that a company has purchased to earn short- term profits are called 8. 9. Held-to-maturity investments are reported atvalue on the 10 Trading secunties are reported at value on the balance sheet. 11. Equity and debt securities that are not classified as trading securities or 12. Excess cash can be invested until it is needed to earn 13. Strategic investments, such as an acquisition, are considered to be 14. The accounting for an equity investment by an investor depends upon balance sheet. 10 held-to-maturity securities are classified as 12. 13. 14. term investments A company that owns between 20% and 50% of another company must 15. 16. 17. use the method 15, Dividends received from marketable securities are reported on the income statement as Dividends received from equity-method securities are recorded as The equity method records the investor's share of the net income of the 16. 17 18. 18