Describe the rationale for making investments in debt and equity instruments. Why do companies invest in debt

Question:

Describe the rationale for making investments in debt and equity instruments. Why do companies invest in debt and equity instruments? How do they decide between debt and equity instruments? Does the related to investments affect the decision between debt and equity investments?
GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...