A lease in which the lessor is not the manufacturer of the asset but is often an independent company that specializes in purchasing assets and leasing them to customers is called a:
A)sales-type lease.
B)direct lease.
C)sale and leaseback.
D)leveraged lease.
E)synthetic lease.

Question

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A direct lease is a lease in which the lessor is not the manufacturer of the asset but is often an independent company that specializes in purchasing assets and leasing them to customers. Sales-type lease is a lease in which the lessor is the manufacturer of the asset. Sale and leaseback involve the sale of an asset by the owner to another party who then leases the same asset back to the original owner. Leveraged lease involves the use of debt financing by the lessor to acquire the leased asset. Synthetic lease is a type of off-balance sheet financing.

A Lease in Which the Lessor Is Not the Manufacturer