The Lessor Recognizes a Profit at the Inception of the Lease

question 119

Multiple Choice

The lessor recognizes a profit at the inception of the lease when the lease is classified as a(n) :

• A)sales-type lease.
• B)direct financing lease.
• C)non-finance lease.
• D)operating lease.

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Definitions:

Filing System

An organized method for storing documents, files, and information so they can be easily retrieved, managed, and kept in order.

Indexing

The naming of a file.

Tapered Extension

A narrowing or reducing in thickness towards one end of an object or structure.

File Folder

A folder or holder used for organizing and storing papers and documents.