Which of the Following Is True of a Direct-Financing Lease

question 24

Multiple Choice

Which of the following is true of a direct-financing lease?

• A) The lessor does not recognize sales revenue from the leased asset.
• B) The lease agreement does not contain a provision for unguaranteed residual value.
• C) The cost of the leased equipment is valued at the recorded cost assigned to the inventory.
• D) The fair value of the leased asset is always greater than the carrying cost of the asset.

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Definitions:

Problem-oriented Recording

A method of documentation focusing on the identification and solving of client problems within professional practices such as social work.

Agency Records

are documents, files, and data held by a governmental or private organization, detailing its activities, transactions, and decisions.

Recording Formats

Various methods or systems used to capture and store audio, video, or data for later retrieval and use.

Digital Record

Electronic documents that capture and store information digitally for easy retrieval and management.