Which of the Following Statements Characterizes a Sales-Type Lease

question 30

Multiple Choice

Which of the following statements characterizes a sales-type lease?

• A) The lessor recognizes a dealer's profit at lease inception and interest revenue over the lease term.
• B) The lessor recognizes only interest revenue over the lease term.
• C) The lessor recognizes only interest revenue over the life of the asset.
• D) The lessor recognizes a dealer's profit at lease inception and interest revenue over the asset life.

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