2. What are the three (Categories) classifications of Debt Investments? 1. 2. 3. 3. Short term securities are also called marketable securities. True False 4. Which of the following is NOT a primary reason why corporations invest in debt and equity securities? a. They wish to gain control of a competitor b. They have excess cash c. They wish to move into a new line of business d. They are required by law 5. Debt in investments are initially recorded at: a. Cost b. Cost plus Boston accrued interest c. Fair value d. Face value 6. Boston Company sells debt investment costing $26,000 for $28,000. In journalizing the sale, credits are to: a. Debt Investment and Loss on Sale of Debt b. Debt Investment and Gain on Sale of Debt c. Stock Investments and Gain on Sale of Stock d. No correct answer is given 7. The words Debt and Bond are interchangeable when buying or sell securities. True False 8. What are the two (Categories) classifications of Stock Investments? 1. 2. 9. Union Corporation acquires 50 Opal Inc. 7%, 10 year, $1000 bonds on January 1, 2018 for $50,000. The company makes 3 - Journal entries on its books: one to record the purchase, one to record the accrual of interest and the other to record the receipt of payment. WHAT ARE THESE THREE ENTRIES