In Order to Properly Record a Direct-Financing Lease, the Lessor

question 19

Multiple Choice

In order to properly record a direct-financing lease, the lessor needs to know how to calculate the lease receivable. The lease receivable in a direct-financing lease is best defined as

• A) the amount of funds the lessor has tied up in the asset which is the subject of the direct-financing lease.
• B) the difference between the lease payments receivable and the fair value of the leased property.
• C) the present value of minimum lease payments.
• D) the total book value of the asset less any accumulated depreciation recorded by the lessor prior to the lease agreement.

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Definitions:

Hepatitis A

A highly contagious liver infection caused by the hepatitis A virus, typically transmitted through ingestion of contaminated food or water.

Alcohol-Based

Refers to products, particularly sanitizers or disinfectants, that contain a significant percentage of alcohol to kill bacteria and viruses.

Washing Hands

The act of cleaning one's hands with soap and water or an alcohol-based hand rub to reduce the spread of germs and prevent infections; a rephrased definition of Hand Hygiene.

Contact Isolation

Infection control measures designed to prevent the spread of diseases that can be transmitted through direct or indirect contact with an infected individual.