Investment : It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares. Securities: Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds. Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk. To prepare: The journal entries in the books of Company G, for the year ended December 31, 2015.

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Chapter 12, Problem 12.6BE

To determine

Investment:

It refers to the process of using the currently held excess cash to earn profitable returns in future. The investments can be made in debt securities such as bonds or equity securities such as shares.

Securities:

Securities are the financial term which is issued by the companies in the secondary market to get the long-term or short-term funds.

Available-for-sale (AFS) securities:

These are short-term or long-term investments in debt and equity securities with an intention of holding the investment for some strategic purposes like meeting liquidity needs or manage interest risk.

To prepare: The journal entries in the books of Company G, for the year ended December 31, 2015.

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