Costs Incurred by the Lessor That Are Associated Directly with Originating

question 125

Multiple Choice

Costs incurred by the lessor that are associated directly with originating a lease and are essential to acquire that lease are called initial direct costs.Initial direct costs are recorded as assets and amortized over the term of the lease in:

• A)An operating lease.
• B)A capital lease.
• C)A direct financing lease.
• D)A sales-type lease.

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Definitions:

Ineffective

Lacking the ability or qualities to produce the intended effect or desired outcome.

Long Lead-in

An extensive introduction or preamble to a document, presentation, or topic that prepares the audience for the main content.

Nonverbal Communication

The transfer of information through body language, facial expressions, gestures, and without the use of spoken language.

Eye Contact

Eye contact involves looking directly into another person's eyes to convey attention, confidence, and engagement in face-to-face communication.