One of the Distinguishing Characteristics of a Direct Financing Lease

question 107

Multiple Choice

One of the distinguishing characteristics of a direct financing lease is that

• A)the lessor is normally a dealer or manufacturer
• B)the net investment in the lease is equal to the cost of the asset or carrying value of the asset
• C)the lease has two sources of earnings: interest revenue and profit or loss from the asset exchange
• D)the property related to the lease remains on the lessor's balance sheet during the term of the lease

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Definitions:

Theory of Evolution

The scientific explanation for the diversity of life on Earth, proposing that species change over time through processes such as natural selection and genetic drift.

Modern Synthesis

A comprehensive, unified explanation of evolution based on combining previous scientific theories, especially of Mendelian genetics with Darwin’s scientific theory of evolution by natural selection.

Mendelian Genetics

The study of inheritance and genetic variation, based on principles first proposed by Gregor Mendel regarding how traits are passed from parents to offspring.

Unified Explanation

A comprehensive explanation that consolidates multiple theories or observations into a single coherent framework.