Asked by Pratik Sanyal on Jun 17, 2024
Verified
The lessor does not have any asset recorded in its financial statements for a lease classified as a sales-type lease.
Sales-Type Lease
A lease arrangement where the lessor recognizes sales revenue at the inception of the lease, often used in lease agreements for property, plant, and equipment.
- Learn about the approaches to accounting and profit identification employed by lessors for assorted leasing options.
Verified Answer
YZ
Yihao ZhangJun 17, 2024
Final Answer :
False
Explanation :
In a sales-type lease, the lessor is treated as if they have sold the asset to the lessee and therefore, they record the asset and the related sales revenue in their financial statements.
Learning Objectives
- Learn about the approaches to accounting and profit identification employed by lessors for assorted leasing options.
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