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

question 23

Multiple Choice

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

• A)Direct financing or sales-type.
• B)Operating,capital,or direct financing.
• C)Operating,sales-type,indirect financing.
• D)Operating,direct financing,or sales-type.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide how particular types of transactions and other events should be reported in financial statements.

GAAP

A standard collection of rules and standards for accounting that are widely used across the United States.

Asset Impairments

The reduction in the book value of an asset when its fair market value falls below its carrying amount on the balance sheet.

Depreciation Methods

Various approaches used to allocate the cost of a tangible asset over its useful life, such as straight-line, declining balance, or units of production methods.