Delivery and Acceptance Certificate is signed by the lessee indicating what?

• A. The date on the D&A will be after the lease agreement is signed and the lessee has received the equipment
• B. The date on the D&A is the same as the lease signing date
• C. The date on the D&A is the equipment delivery date only
• D. The date on the D&A is unrelated to delivery

Answer: (A)

The key idea is that the Delivery and Acceptance Certificate records when the equipment was actually delivered and accepted by the lessee. That means the date on the certificate should reflect the moment delivery occurred and the lessee formally accepted the equipment, which happens after the lease has been signed. So the date will be after the lease agreement is signed and after the lessee has received the equipment. It isn’t just the signing date, and it isn’t only the delivery date in isolation—the certificate ties delivery to formal acceptance, establishing the true start of the asset’s use under the lease.