Chapter 12Investments



Learning Objectives

After studying this chapter, you should be able to:

1 Discuss why corporations invest in debt and share securities.

2 Explain the accounting for debt investments.

3 Explain the accounting for share investments.

4 Describe the use of consolidated financial statements.

5 Indicate how debt and share investments are reported in financial statements.

6 Distinguish between short-term and long-term investments.


Feature Story

Playing for Fun and Profit

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