4.

Which of the following does not properly describe the presentation by the lessor under ASC 842?

Multiple Choice

• Sales type lease assets are presented as combined with other assets of the same category.

• A lease used as a method of selling manufactured products will include selling profit as the difference between revenue and cost of goods sold.

• For operating leases, income is presented on a straight-line basis on the income statement.

• Cash receipts from leases are shown in the operating activities section of the statement of cash flows.