ENTREPRENEURIAL FINANCE
SOURCES OF FUNDING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following is the correct definition of sale and lease back?
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Purchase of an item that can be used immediately and paid for in installments
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Sale of an asset the business owned but is still used by the business by paying monthly installments
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Obtaining the use of an item through payment but the item is never owned by the business.
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None of the above
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Explanation:
Detailed explanation-1: -A sale leaseback is a transaction in which a property owner sells his or her asset to an investor and then leases it back from the investor.
Detailed explanation-2: -A sale and leaseback transaction is one where an entity (the seller-lessee) transfers an asset to another entity (the buyer-lessor) for consideration and leases that asset back from the buyer-lessor. Ind AS 116 makes significant changes to sale and leaseback accounting.
There is 1 question to complete.