1-If the Fair Value Adjustment minus Trading account for trading debt investments has a debit balance, it is 2-A preferred stock is an example of a debt security. True False 3-Equity securities, in which the investor lacks the ability to participate in the decisions of the investee company, are initially accounted for at the lower-of-cost-or-market value. True . False 4- are equity securities in which the investor owns between 20% and 50% of the investee's voting stock. 5-Securities are represented by a certificate and are commonly traded on an exchange. True False 6-When a company receives interest revenue on a bond investment, total stockholders' equity remains unchanged. True False 7-When a company collects the face value of a bond investment at maturity, total assets increase. True False 8-Creditors invest in a company and hope to receive a return on their investment. True False