MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 16) Liabilities are classified on the balance sheet as current or A) accrued. B) long-term. C) deferred. 17) Most companies pay current liabilities A) by issuing interest-bearing notes payable. B) by creating long-term liabilities. C) out of current assets. D) by issuing stock. D) unearned. 18) From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that A) income to stockholders may increase as a result of trading on the equity. B) bond interest is deductible for tax purposes. C) interest must be paid on a periodic basis regardless of earnings. D) the bondholders do not have voting rights. 19) Secured bonds are bonds that A) are in the possession of a bank. B) can be converted into common stock. C) mature in installments. D) have specific assets of the issuer pledged as collateral. 20) A legal document that indicates the name of the issuer, the face value of the bond and such other data is called A) a bond debenture. B) a convertible bond. C) trading on the equity. D) a bond certificate.