Question

________ are equity securities in which the investor owns 20% or more, but less than 50%,...

________ are equity securities in which the investor owns 20% or more, but less than 50%, of the investee's voting stock.

Held-to-maturity investments

Significant interest investments

Available-for-sale investments

Controlling interest investments

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Answer #1

Answer: Significant interest investments

Explanations:

Held-to-maturity investments:

Securities the investor intends to hold until they mature

Significant interest investments:

Securities in which the investor owns 20% or more, but less than 50%, of the investee's voting stock.

Available-for-sale investments:

Securities in which the investor holds less that 20% of the investee's voting stock and that the investor does not plan to hold until they mature

Controlling interest investments:

Securities in which the investor owns more than 50% of the investee's voting stock.

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