Which of the Following Statements Characterizes a Sales-Type Lease

question 54

Multiple Choice

Which of the following statements characterizes a sales-type lease?

• A) The lessor recognizes only interest revenue over the life of the asset.
• B) The lessor recognizes only interest revenue over the lease term.
• C) The lessor recognizes a dealer's profit at lease inception and interest revenue over the lease term.
• D) The lessor recognizes a dealer's profit at lease inception and interest revenue over the asset life.

---

Definitions:

Labor Market

The marketplace where the supply of workers is met by the demand for them by employers, determining employment levels and wages.

Median Earnings

The midpoint value of earnings in a specified group, where half earn more and half earn less.

Labor Market

A marketplace where employers find workers and workers find jobs.

Marginal Productivity Theory

An economic principle that asserts the payment factors of production, like labor and capital, is based on their marginal productivity in the production process.