relationship such as investments Debt securities reflect a in bonds and Certificates of Deposit. Long term investments in securities are defined as those securities that are to be convertible to cash or are converted into cash in the short term. relationship such as shares of stock Equity securities reflect an issues by companies. show the financial position, Consolidated. results of operations and cash flows of all entities under the parent's control, including all subsidiaries. is used to account for long term The equity method with investments in equity securities with controlling influence. Jared Inc. owns 1,000 shares of Google's 20,000 outstanding shares. Jared's method. investment would are accounted for using the When shares of stock held as an investment is sold and the book value at the time of the sale is less than the selling price, this would result in a owns 20,000 of 80,000 shares of common stock The Three Brothers Company outstanding of Apple and exercises significant influence over its operating and should be used to financial policies. The account for the investment. reported Investments (aka temporary investments) in debt and equity securities are 2