Technoid would account for this as:
A)A capital lease.
B)A direct financing lease.
C)A sales-type lease.
D)An operating lease.

Name: Technoid would account for this as: A)A capital lease. B)A direct financing lease. C)A sales-type lease. D)An operating lease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

In a sales-type lease, the lessor (Technoid) recognizes revenue and profit at the inception of the lease, and the lease is accounted for as a sale. This type of lease is common when the lessor is also the manufacturer of the leased asset.

Technoid Would Account for This As