1--Companies often show investments on their books.
a. What are investments?
b. List the various classifications of investments when an investor lacks significant influence. Briefly describe the accounting treatment and how it is shown in the financial statements for each item in this category of investments.
c. List the various classifications of investments when an investor can exercise significant influence. Briefly describe the accounting treatment and how it is shown in the financial statements for each item in this category of investments.
2--What is Troubled Debt Restructuring? Why might a Corporation want to restructure its debt? Briefly explain how restructuring may be arranged between a lender and a borrower.