In the balance sheet, the account, Premium on Bonds Payable, is

Question 24 options:

deducted from bonds payable.

added to bonds payable.

classified as a stockholders' equity account.

classified as a revenue account.

A major disadvantage resulting from the use of bonds is that

Question 19 options:

	earnings per share may be lowered.
	interest must be paid on a periodic basis.
	taxes may increase.
	bondholders have voting rights.