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?