Which of the following statements about the treatm...
Which of the following statements about the treatment of leases on the lessor’s financial statements is least accurate?
A.If the present value of the payments on a finance lease is greater than the carrying value of the asset, the lease is a sales-type lease on the books of the lessor.
B.In a direct financing lease, the lessor recognizes gross profit at the lease inception, while in a sales-type lease it does not.
C.To be a finance lease for the lessor, collectability must be reasonably certain and the lessor must have substantially completed performance.