What Is the Difference Between a Sales-Type Lease and a Direct-Financing

question 375

Multiple Choice

What is the difference between a sales-type lease and a direct-financing lease?

• A)The lessor uses a longer amortization period on a sales-type lease.
• B)The lessor receives less interest on a sales-type lease.
• C)The lessor receives more interest on a sales-type lease.
• D)The lessor receives a manufacturer's or dealers profit.

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Definitions:

Testes

Male reproductive organs tasked with producing sperm and sex hormones, primarily testosterone.

Leydig Cells

Cells located within the testes that produce testosterone in response to luteinizing hormone.

Androgens

Androgens are a group of steroid hormones that play a key role in male traits and reproductive activity, present in both males and females.

Testes

The male reproductive glands where sperm and male sex hormones (such as testosterone) are produced.