For a Sales-Type Lease,under SFAS No

question 21

Multiple Choice

For a sales-type lease,under SFAS No.13,the net investment is equal to

• A)The present value of the minimum lease payments plus executor costs.
• B)The net investment minus unearned income.
• C)Sales minus the gross profit recognized on the sale.
• D)The present value of the gross investment.

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Definitions:

Government Regulation

Rules established by government aimed at controlling or directing economic or social activities.

Average Price

The sum of the prices of all units sold of a product or service divided by the number of units.

Interest Rate

The percentage of a sum of money charged for its use, which can vary depending on the type of loan, the duration, and the risk involved.

Credit Availability

Credit availability denotes the ease with which individuals or businesses can obtain loans or credit from financial institutions.