1. When a company has a temporary book-tax difference that causes taxable income to be greater than pre-tax financial income, during their first year of operations, the proper accounting would result in a

a. Deferred Tax Asset

b. Deferred Tax Liability

c. Neither

2. Direct financing lease accounting is generally designed to be used by:

a. lessors who are banks or finance companies

b. lesseess who plan to purchase the leases asset at the end of the leased term

c. none of the above

d. lessors who are dealers or manufacturers of the leased asset