QUESTION 2 Which of the following is true as it relates to long-term liabilities? O Notes Payable are backed with a security interest in specific properties Mortgages Payable are always paid in annual installments Bonds Payable will always be recorded on the Balance Sheet at par value Interest will reduce the total amount of the carrying value QUESTION 3 Which of the following is an advantage of issuing equity (stock) over debt (bonds)? O Companies are required to pay dividends O Debt dilutes the ownership of the company Companies can raise capital Companies can avoid double taxation