Which of the following statements is TRUE?

Investments in debt securities are always classified by the $\%$ of the total outstanding debt available for sale.

Unrealized gains and losses are recorded when investments are adjusted to fair value.

Investments in debt securities are always classified as long$-$term investments.

Investments in equity securities are contra$-$asset accounts.

When a company has significant influence or control over another company, consolidated financial statements should be prepared.