CALCULATOR Multiple Choice Question 45 Why do corporations generally invest in debt or equity securities? They have excess cash. They want to generate earnings from investment income. They invest for strategic reasons. All of these answer choices are correct. Click if you would like to Show Work for this question: Open Show Work CALCULATO Multiple Choice Question 46 Why do pension and mutual funds invest in debt and equity securities? They want to generate earnings from investment income. They invest for strategic reasons. They invest for speculative reasons. They have excess cash. Multiple Choice Question 48 Which of the following is a debt security? IBM stock. Treasury stock. Treasury bills. None of these answer choices are correct. CALCULATOR MES Multiple Choice Question 52 At the time of acquisition of a debt investment the historical cost principle applies. the Stock Investments account is debited when bonds are purchased the investment account is credited for its cost plus brokerage fees. no journal entry is required. Click if you would like to Show Work for this question: Open Show Work Multiple Choice Question 72 Which of the following is not a true statement about the accounting for long-term debt investments? O The cost includes any brokerage fees. O Debt investments include investment in government and corporation bonds The cost includes any accrued interest. The investment is initially recorded at cost. Click if you would like to Show Work for this question: Open Show Work CALCULATOR MESSAGE MY INSTRUCTOR Multiple Choice Question 82 When a company holds stock of several different corporations, the group of securities is identified as a(n) investment portfolio. controlling interest. affiliated investment. consolidated portfolio. Click if you would like to Show Work for this question: Open Show Work