Multiple Choice
From the lessor's standpoint, which of the following statements regarding leasing is false?
A) The lease provides a method of indirectly making a sale.
B) The asset is transferred to the lessee and removed from the books of the lessor.
C) For sales-type lease agreements, the lessor earns interest in addition to profit from the transfer of the asset.
D) The risk of default is a disadvantage for the lessor.
Correct Answer:
Verified
Correct Answer:
Verified
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