A shift toward more fixed costs increases business risk, which in turn causes earnings before interest and taxes to increase by less for a given increase in sales

On December 31, 2017, Lopez Sales has a Bonds Payable balance of $72,000 and a Premium on Bonds Payable balance of $4,000. On the balance sheet, how will this information be shown?

A) $72,000 less premium of $4,000 for a net balance of $68,000 B) $72,000 less one-tenth of $4,000 for a net balance of $71,600 C) $72,000 D) $72,000 plus a premium of $4,000 for a net balance of $76,000

Internal control is most effective when only one person is responsible for a given task.

a. true b. false