Loyalty Programs Are Designed to

question 14

Multiple Choice

Loyalty programs are designed to

• A) decrease sales.
• B) increase inventory levels.
• C) increase sales.
• D) decrease cost of goods sold.

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Definitions:

Direct Financing Leases

A type of lease where the lessor accounts for the asset as a receivable at an amount equal to the net investment in the lease.

Sales-Type Leases

Leases where the lessor recognizes immediate profit on the sale, in addition to interest revenue over the lease term, similar to a financial purchase.

Direct Financing Lease

A type of lease arrangement where the lessor purchases the asset for the lessee and finances it, with lease payments designed to cover the cost and provide a return on investment.