Which of the following statements about the accounting for debt investments are true? (Select all that apply.) Check All That Apply When debt investments are purchased, they are recorded at cost. When debt investments are purchased, they are recorded at cost. If a company purchases bonds for an amount that’s less than their face amount, it credits Discount on bond investment for the difference. If a company purchases bonds for an amount that’s less than their face amount, it credits Discount on bond investment for the difference. When the effective interest method is used, the effective interest (or interest revenue) for each period equals the stated rate of interest multiplied by the outstanding balance of the debt at the beginning of the period. When the effective interest method is used, the effective interest (or interest revenue) for each period equals the stated rate of interest multiplied by the outstanding balance of the debt at the beginning of the period. The amortization of the discount gradually decreases the amortized cost of an investment in bonds purchased at a discount.