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Exam (elaborations)
ACF Quizzes Study Guide 2023/2024.
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Leveraged Lease - correct answer Where a lessor purchases an asset through borrowing and uses the lease payments to pay interest and principal on the loan. Sales-Type Lease - correct answer A lease where the lessor is the primary dealer for the asset. Sale and Lease-Back - correct answer The firm sells the asset and receives cash from the sale and then makes lease payments to retain the use of the asset. Direct Lease - correct answer A lease where a firm does not make the asset, but instead acquires it from a manufacturer of the asset and then leases its customers.
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