The primary difference between a direct-financing lease and a sales-type lease is the manufacturer's or dealer's gross profit.

Name: The primary difference between a direct-financing lease and a sales-type lease is the manufacturer's or dealer's gross profit.
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

The manufacturer's or dealer's gross profit is recognized in the financial statements immediately for a sales-type lease, while for a direct-financing lease, the profit is recognized over the life of the lease as interest income.

The Primary Difference Between a Direct-Financing Lease and a Sales-Type