Which Type of Leases Are Not Recorded on the Balance

question 4

Multiple Choice

Which type of leases are not recorded on the balance sheet?

• A) operating
• B) finance
• C) direct financing
• D) sale and leaseback

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Definitions:

Disrupted Habits

Patterns of behavior that have been interrupted or altered, often due to changes in the environment, technology, or personal circumstances, leading individuals to adapt or develop new routines.

Poor Timing

The action or decision taken at an inappropriate time, potentially leading to less effective outcomes or failure.

Binding Price Floors

Binding price floors are minimum prices set by the government for certain goods or services that are above the equilibrium price, leading to surpluses.

Sellers

Persons or organizations that provide products or services to buyers or other commercial entities.