Based solely upon the following sets of circumstances,indicate below which set gives rise to a sales type or direct financing lease of a lessor,under SFAS No.13: Transfers Contains
Ownership bargain
By end of purchase
Lease? Provision?
A)No Yes
B)Yes No
C)Yes Yes
D)No No

Question

Quizplus · Accepted Answer

The ownership transfer and ownership bargain indicate a sales-type lease, while the provision of lease indicates a direct financing lease. Therefore, both conditions are present in option C, making it the correct choice. None of the other options includes both conditions.

Based Solely Upon the Following Sets of Circumstances,indicate Below Which