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Why would a lessor provide direct-financing to a lessee

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Reference no: EM131121554

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?

Reference no: EM131121554

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