The interest earned on the principal amount only is referred to as_____________

When the lessee agrees to make up any deficiency below a stated amount that the lessor realizes in residual value, that stated amount is the guaranteed residual value

a. true b. false

If a bond is sold at a discount, the carrying value reported on the balance sheet in subsequent years ________

A) stays the same each year B) increases each year C) decreases each year D) changes every year as the market rate of interest changes