The basic difference between a direct-financing lease and a sales-type lease relates to the recognition of the profit on the sale.

Group of answer choices

True/False

Leasing equipment reduces the risk of obsolescence to the lessee and in many cases passes the risk of residual value to the lessor.

Group of answer choices

True/False

A single lease expense is recognized on the income statement for

-neither a finance lease or an operating lease.

-an operating lease.

-a finance lease.

-both a finance lease and an operating lease.