Answered: A lease that involves a manufacturer’s…

A lease that involves a manufacturer’s or dealer’s profit is a(an):(a) direct financing lease.(b) finance lease.(c) operating lease.(d) sales-type lease

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Leasing

Leasing is a contractual arrangement in which someone (a lessee) pays the owner (or lessor) of a building, land, vehicle, or other asset for the use of that asset. The lease is the agreement between lessee and lessor.

Question

A lease that involves a manufacturer’s or dealer’s profit is a(an):
(a) direct financing lease.
(b) finance lease.
(c) operating lease.
(d) sales-type lease

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