Reference no: EM132497454

Question - Corporations often invest in securities of other business entities. Some investments are for the purpose of developing favorable business relationships. Others may be as long-term investments to provide an income stream over time. And others may be to try to benefit from changing market conditions. The accounting literature provides many different options to account for investments. What are the options available to corporations to account for investments? What are the underlying reasons for classifying an investment in one category over another one? How are unrealized gains and losses treated in the different categories? How are dividends and/or interest treated in the different categories?