Part 1 - Multiple Choice: 45 Points (15 Questions, 3 Points each) Please circle the lette best completes each question. 1) A typical investment to house excess cash until needed is a. stocks of companies in a related industry. b. debt securities. c. low-risk, highly liquid securities. d. stock securities. 2) At the time of acquisition of a debt investment, a. no journal entry is required. b. the historical cost principle applies. c. the Stock Investments account is debited when bonds are purchased. d. the Investment account is credited for its cost plus brokerage fees. 3) If a short-term debt investment is sold, the Investment account is a. debited for the fair value of the bonds at the sale date. b. credited for the cost of the bonds at the sale date. c. credited for the fair value of the bonds at the sale date. d. debited for the cost of the bonds at the sale date. 4) The company whose stock is owned by the parent company is usually called the a. subsidiary company. b. controlled company. c. investee company. d. sibling company