Effective Writing 10th Edition by Claire May,Gordon May

Exercise 4

You have received an inquiry from a prospective client, Lazy Sofa, Inc., concerning the accounting for investments. Betty Jason, owner of Lazy Sofa, is considering investing some of her company's idle cash in either equity or debt securities. Write a report for Ms. Jason, explaining briefly how the types of investments and her purpose for investing might affect the accounting methods used. Remember that your client knows very little about accounting.