Which of the Following Statements Is Correct

question 58

Multiple Choice

Which of the following statements is correct?

• A)In a direct-financing lease, initial direct costs are added to the net investment in the lease.
• B)In a sales-type lease, initial direct costs are expensed in the year of incurrence.
• C)For operating leases, initial direct costs are deferred and allocated over the lease term.
• D)All of these.

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Definitions:

Environmental Impacts

The effect of human activities and natural events on the natural environment, including changes to air, water, and land.

Sustainability

The practice of maintaining processes or systems in a way that does not deplete natural resources, ensuring long-term ecological balance.

Competitive Advantage

The attributes or conditions that allow a company to produce goods or services better or more cheaply than its competitors.

Environmental Costs

Expenses associated with the negative impact of a company's operations on the natural environment, including waste disposal, pollution control, and resource depletion.