Which of the Following Statements Concerning Direct Financing Leases Is

question 106

Multiple Choice

Which of the following statements concerning direct financing leases is true?

• A) The net investment in the lease should be adjusted each year by material increases but not decreases) in estimated unguaranteed residual values.
• B) The lessor reports only interest revenue on the income statement.
• C) Initial direct costs result in an increase in Unearned Interest Revenue-Leases by an amount equal to these costs in the year the costs are incurred.
• D) The lessor's gross margin is amortized over the life of the lease.

---

Definitions:

Modern Psychology

The scientific study of the mind and behavior, incorporating contemporary theories and methodologies.

Wilhelm Wundt

Often recognized as the father of experimental psychology, he established the first psychology laboratory at the University of Leipzig in 1879.

Trained Introspectors

Individuals who have been trained to carefully observe and report the content of their own thoughts and mental activities.

Wilhelm Wundt

A German psychologist who is considered the father of experimental psychology, founding the first formal laboratory for psychological research.