WEEK_5 DQ ALL 3 QUESTIONS

Feb 3rd, 2012
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Ashford University
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1.What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessor provide direct-financing to a lessee? What types of organization’s provide direct-financing leases? 2.What are the criteria for classifying a lease as operating or capital? Why is there a difference between the two? What are the implications of an operating lease versus a capital lease on an entity’s financial statements? 3.What is residual value? What is the implication to the lessee if the residual value is guaranteed or un-guaranteed? What is the implication to the lessor?

What are the differences between a direct-financing and a sales-type lease for a lessor? Why would a lessorprovide direct-financing to a lessee? What types of organizations provide direct-financin

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