A Direct Financing Lease Differs from a Sales-Type Lease in That

question 75

Multiple Choice

A direct financing lease differs from a sales-type lease in that

• A)the direct financing lease does not have a dealer profit, although it may have a dealer loss
• B)the direct financing lease provisions cannot include a bargain purchase option
• C)the sales-type lease does not have unearned interest income at the inception of the lease
• D)the direct financing lease does not have a dealer profit or loss

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Definitions:

State Court

A court that is established by the laws of a state within the United States, having jurisdiction over matters specific to that state.

Diversity of Citizenship

A basis for federal court jurisdiction when parties in a lawsuit are citizens of different states or a foreign country, allowing for disputes to be heard in federal court.

Citizens

Members of a state or nation who are legally recognized and entitled to its protection and to political rights.

Different States

Variations across U.S. states or countries, particularly concerning laws, regulations, and cultural practices.