For a Sales-Type Lease, Cost of Asset Leased Is Valued

question 47

Multiple Choice

For a sales-type lease, cost of asset leased is valued by the lessor at

• A) the recorded cost assigned to the inventory less the present value of the guaranteed residual value of the leased property accruing to the benefit of the lessor.
• B) the recorded cost assigned to the inventory less the undiscounted value of the unguaranteed residual value of the leased property accruing to the benefit of the lessor.
• C) the recorded cost assigned to the inventory less the present value of the unguaranteed residual value of the leased property accruing to the benefit of the lessor.
• D) the recorded cost assigned to the inventory less the undiscounted value of the guaranteed residual value of the leased property accruing to the benefit of the lessor.

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Definitions:

Correlational Methods

Research techniques that study the relationship between two or more variables without determining cause and effect.

Experimental Methods

Research strategies involving the manipulation of one variable to determine its effect on another variable, within a controlled environment, to establish cause-and-effect relationships.

Randomly Assign

The process of distributing participants in a study into different groups using random methods to ensure that each participant has an equal chance of being assigned to any group.

Variable

A characteristic or quantity that can vary or change within a study, research, or mathematical model.