The Lessor Should Report the Lease Receivable for a Sales-Type

question 63

Multiple Choice

The lessor should report the Lease Receivable for a sales-type lease on its balance sheet as

• A)a current asset
• B)a long-term asset
• C)a current asset for the current portion and a long-term asset for the remaining amount
• D)only a note to the financial statements

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Definitions:

RRSP

Registered Retirement Savings Plan, a Canadian financial retirement savings tool for individuals to hold investment assets and savings tax-deferred until withdrawal.

Contributions

Payments or services provided to a common fund or collection.

Semi-annually Compounded

A method of calculating interest where the interest is added to the principal amount twice a year, leading to growth at an exponential rate.

Semi-annual Payment

A payment made twice a year, often related to loans or investments requiring interest payments or installments.