- CFA Exams
- CFA Exam: Level I 2021
- Study Session 8. Financial Reporting and Analysis (3)
- Reading 28. Non-current (Long-term) Liabilities
- Subject 9. Accounting and Reporting by the Lessor
CFA Practice Question
According to U.S. GAAP, a lease may be classified by a lessor as a(n) ______.
B. operating lease or a direct financing lease
C. operating lease, direct financing lease, or a sales-type lease
A. operating lease or a sales-type lease
B. operating lease or a direct financing lease
C. operating lease, direct financing lease, or a sales-type lease
Correct Answer: C
For the lessor, the lease is first classified as operating or capital. Then, if it is a capital lease, it is classified as either sales-type or direct financing lease.
User Contributed Comments 1
| User | Comment |
|---|---|
| kalps | 1. Classify as operating or capital lease 2. Then if capital then it is classified as a sales-type or direct financing lease |