From the Perspective of the Lessee,leases May Be Classified as Either

question 115

Multiple Choice

From the perspective of the lessee,leases may be classified as either:

• A)Direct financing or sales-type.
• B)Capital or direct financing.
• C)Capital or operating.
• D)Direct financing or operating.

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Definitions:

Selling Price

The amount of money for which a product or service is sold to customers.

Accrued Loss

Refers to a loss that has occurred but has not yet been recorded in the accounting records through the date of the financial statements.

Purchase Commitments

Agreements to buy goods or services at a predetermined price, often specifying quantity and delivery dates.