Which statement is not true? A leveraged lease always

A) involves three parties
B) is considered to be a sales-type lease
C) is a lessor classification, not a lessee classification
D) involves nonrecourse financing

Leveraged Lease

A financing arrangement where the lessor uses borrowed funds to acquire an asset which is then leased to a lessee, allowing for tax benefits and risk distribution.

Sales-type Lease

A lease agreement where the lessor effectively sells the asset to the lessee, recognizing profit or loss at the lease's inception.

Lessor Classification

Refers to criteria used by lessors to determine whether a lease should be classified as a finance lease or an operating lease.