The company may have excess cash .
The company may invest for speculative reasons to increase the value in pension funds .
The company may generate a significant portion of its earnings from investment income .
The company may invest for the strategic reason of establishing a presence in a related industry .
9- Multiple Choice Question 115
The balance sheet presentation of an unrealized loss on a non-trading security is similar to the statement presentation of
treasury stock . discount on bonds payable . prepaid expenses . allowance for doubtful accounts . 10- Multiple Choice Question 142
A company that acquires less than 20 % ownership interest in another company should account for the stock investment in that company using
the significant method . the equity method . consolidated financial statements .