Question $2$

Which statements accurately describe a difference between debt and equity investments?

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$1$ point

Debt investments represent ownership interests in a company, while equity investments represent loans made to a company.

Debt investments are reported at fair value, while equity investments are reported at historical cost.

Debt investments are classified as current assets, while equity investments are classified as long$-$term liabilities.

Debt investments provide a fixed rate of return, while equity investments provide potential for both income and capital appreciation.