ACC12 Hw 4 Ch15 S-2018 Prof.Ren classified as a stockholders' equity account. d. classified as a revenue account. 14. Bond interest paid is a. higher when bonds sell at a discount. b. lower when bonds sell at a premium c. the same whether bonds sell at a discount or a premium higher when bonds sell at a discount and lower when bonds sell at a premium. Which one of the following amounts increases each period when accounting for long- 15. term notes payable? a. Cash payment b. Interest expense c. Principal balance d. Reduction of principal 16. The lessee has substantially all of the benefits and risks of ownership in a(n) a. apartment lease. b. capital lease. c. operating lease. d. operating lease and a capital lease. 17. Which of the following is not a condition which would require the recording of a lease contract as a capital lease? a. The lease transfers ownership of the property to the lessee. b. The lease contains a bargain purchase option. The lease term is less than 75% of the economic life of the leased property. d The present value of the lease payments equals or exceeds 90% of the fair value of the leased property