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Why would a lessor provide direct-financing to a lesseewhat

5 Accounting Discussion Questions ACC/422

Discussion Questions: Chapter 21 : Intermediate Accounting

Please answer each question individually in at least 120 words per.

1. What are the differences between a direct-financing and a sales-type lease for a lessor?

2. Why would a lessor provide direct-financing to a lessee?

3. What are the criteria for classifying a lease as operating or capital?

4. What are the advantages of operating and capital leases?

5. What are the advantages and disadvantages of leasing versus buying or leasing versus selling?

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Accounting Basics: Why would a lessor provide direct-financing to a lesseewhat

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