A Sales-Type Lease Differs from a Direct Financing Lease in One

question 97

Multiple Choice

A sales-type lease differs from a direct financing lease in one respect:

• A)The lessor receives a manufacturer's or dealer's profit.
• B)The lessor receives more interest than on a direct financing lease.
• C)The lessor receives less interest than on a direct financing lease.
• D)The lessor uses a longer amortization period than on a direct financing lease.

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Definitions:

Hz

The unit of frequency in the International System of Units (SI), denoting the number of cycles per second.

Greeks

Refers to the citizens of Greece, their culture, or the ancient inhabitants known for their contributions to art, philosophy, and science.

Electricity

A form of energy resulting from the existence of charged particles such as electrons or protons, manifesting as an attraction or repulsion between those particles.

Total impedance

The overall resistance to the flow of alternating current, combining the effects of resistances, inductive reactance, and capacitive reactance in a circuit.