Unearned revenue and accounts receivable are examples of current liabilities. True False Question 8 (1.75 points) Liabilities for gift cards and similar items must be kept on the balance sheet until they are redeemed, regardless of how long that takes. True False Question 9 (1.75 points) One advantage of debt financing is that interest is tax deductible. True False A company's creditors can force it into bankruptcy if it can't pay its debts. True False Question 11 (1.75 points) Banks typically charge stronger companies higher interest rates than weaker ones because the strong companies can better afford it. True False Question 12 (1.75 points) Financial leverage refers to a company's ability to pay its debts off early, avoiding interest payments. True False Question 13 (1.75 points) Debt covenants exist to product the creditor. True False Question 14 (1.75 points) When a company issues a bond between interest dates, the first interest payment will be lower. True False Question 15 (1.75 points) A debenture is a debt that is not secured. True False Question 16 (1./5 points) The maturity value of a bond is amount that the company will need to repay at the end of the bond term. True False Question 17 (1.75 points) Accounting for a finance lease and an installment loan is not similar at all. True False Question 18 (1.75 points) Each payment on an installment loan must be separated into interest expense and principal. True False