Discuss the distinction between realized and holding gains

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Question - Realized and Unrealized Losses - An important part of the accounting for investments in marketable securities is the distinction between the various classifications of investments.

Required -

1- When a company has excess cash, what types of securities may it invest in?

2- Explain how the distinction between the various investment classifications is made.

3- Discuss the distinction between realized and holding gains and losses on investments in debt and equity securities.

4- Explain how a company discloses realized and holding gains and losses on investments in equity securities on its financial statements.

Reference no: EM132755415

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