Unlike in a Direct-Financing Lease, the Lessor in a Sales-Type

question 50

Multiple Choice

Unlike in a direct-financing lease, the lessor in a sales-type lease:

• A) expenses all initial direct costs at the inception of the lease.
• B) defers all initial direct costs over the lease term.
• C) removes the carrying value of the leased asset.
• D) records rental revenue for each period.