The Initial Direct Costs of Leasing

question 39

Multiple Choice

The initial direct costs of leasing

• A) are generally borne by the lessee.
• B) include incremental costs related to internal activities of leasing, and internal costs related to costs paid to external third parties for originating a lease arrangement.
• C) are expensed in the period of the sale under a sales-type lease.
• D) All of the answers are true with regard to the initial direct costs of leasing.

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Definitions:

IACs

An abbreviation that could stand for Internet Access Controllers, though without specific context, its precise meaning can vary.

Labor Force

Persons 16 years of age and older who are not in institutions and who are employed or are unemployed and seeking work.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products.

Demographic Transition

The transition from high birth and death rates to low birth and death rates as a country develops from a pre-industrial to an industrialized economic system.