The Primary Difference Between a Direct-Financing Lease and a Sales-Type

Multiple Choice

The primary difference between a direct-financing lease and a sales-type lease under SFAS No.13 is the

A) Recognition of the manufacturer's or dealer's profit at or loss) the inception of the lease
B) Amount of the depreciation recorded each year by the lessor
C) Allocation of initial direct costs by the lessor to periods benefited by the lease arrangements
D) Manner in which rental receipts are recorded as rental income