In a continuation of their efforts to explore the financial condition of the Com

In a continuation of their efforts to explore the financial condition of the Company, the Board of Directors has now started to explore the various investment strategies of the company. They would like to understand more about the differences between debt versus equity investments. They also wish to learn more about the various types of investments reported on the Balance Sheet. Explain the following: (1) debt versus equity securities; (2) how to account for these investments.