For a direct-finance capital lease, the lessor removes the leased asset from its balance sheet and records a lease receivable at the inception of the lease.

Question

Quizplus · Accepted Answer

In a direct-finance capital lease, the lessor removes the leased asset from its balance sheet and records a lease receivable, reflecting the present value of lease payments to be received.

For a Direct-Finance Capital Lease, the Lessor Removes the Leased