Which of the Following Is a Difference Between a Direct-Financing

Multiple Choice

Which of the following is a difference between a direct-financing lease and a sales-type lease?

A) Unlike a direct-financing lease, a sales-type lease includes a manufacturer's or a dealer's profit or loss.
B) Unlike in a direct-financing lease, the depreciation expense on the leased asset in a sales-type lease is recorded in the accounts of the lessor.
C) Unlike in a sales-type lease, the lessee in a direct-financing lease recognizes a right-of-use asset and a lease liability at the commencement of the lease.
D) Unlike a sales-type lease, a direct-financing lease involves the transfer of ownership to the lessee.