A Lessor Has an Account, Equipment Leased to Others, and the Related

question 27

Multiple Choice

A lessor has an account, Equipment Leased to Others, and the related account, Accumulated Depreciation: Equipment Leased to Others, on its year-end balance sheet. How should the lease related to these accounts be classified?

• A) operating lease
• B) direct financing lease
• C) sales-type lease
• D) leveraged lease

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Definitions:

Systematic Desensitization

Systematic desensitization is a therapeutic technique used to gradually reduce anxiety through controlled exposure to the feared object or situation combined with relaxation exercises.

Social Skills Training

A therapeutic approach designed to improve interpersonal skills through teaching and practice.

Rational Emotive Therapy

A form of cognitive-behavioral therapy that focuses on identifying irrational beliefs, challenging these beliefs, and replacing them with more rational ones to facilitate emotional well-being.

Drug Therapy

A type of treatment involving the prescription and use of medications to treat illness and improve health.