The Type of Lease in Which the Lessor Acquires or Purchases

question 166

Multiple Choice

The type of lease in which the lessor acquires or purchases the asset in order to lease to a givenlessee is known as

• A) a financial lease
• B) a leveraged lease
• C) an operating lease
• D) a direct lease

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate behavior or processes.

Government Accountant

A professional specializing in managing and auditing the financial transactions and practices of government agencies and entities.

Management Accountant

A profession that involves partnering in management decision making, devising planning and performance management systems, and providing expertise in financial reporting and control to assist in formulating and implementing an organization's strategy.

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and other investments not included in cash equivalents.