If the lessor meets any one of the five Group I criteria, then the lessor classifies the lease as a(n) ________. If the lessor meets both of the Group II criteria, but none of the Group I criteria, then the lessor classifies the lease as a(n) ________. If the transaction does not meet either the Group I or Group II criteria, then the lessor classifies the lease as a(n) ________.
A) operating lease; direct financing lease; sales-type lease
B) sales-type lease; direct financing lease; operating lease
C) standalone price lease; sales-type lease; direct financing lease
D) direct financing lease; operating lease; sales-type lease

Question

Quizplus · Accepted Answer

If any Group I criteria are met, it's a sales-type lease. If both Group II criteria are met but none from Group I, it's a direct financing lease. If neither criteria are met, it's an operating lease.

If the Lessor Meets Any One of the Five Group