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Basic Question 2 of 8
What is a conventional rental agreement that transfers ownership rights to the lessee at the end of the rental term?
B. Operating lease
C. Direct financing lease
D. Sales-type lease
A. Capital lease
B. Operating lease
C. Direct financing lease
D. Sales-type lease
User Contributed Comments 3
| User | Comment |
|---|---|
| waynenfire | Isn't a sales-type lease the same thing though from the lessors prespective, in that, it also transfers ownership rights to the lessee? |
| Capital | But it is not a "conventional rental agreement" as specified by this question. |
| jpowers | Direct financing lease and sale-type lease are types of capital leases from the lessor's point of view, |
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Learning Outcome Statements
explain the financial reporting of leases from the perspectives of lessors and lessees
CFA® 2025 Level I Curriculum, Volume 2, Module 8.