A sale-leaseback transaction is
A) a lease that has a profit component that is recognized as sales revenue.
B) when a company buys an asset and then leases it to someone else other than the seller.
C) a transaction in which a property owner sells a property to another party and, and at the same time leases a similar asset.
D) a transaction in which a property owner sells a property to another party and, at the same time, leases the same asset back from the new owner.

Question

Quizplus · Accepted Answer

A sale-leaseback transaction is a transaction in which a property owner sells a property to another party and, at the same time, leases the same asset back from the new owner. This allows the original owner to generate cash from the sale of the property while still being able to use it for their business operations. It is a common way for businesses to free up capital that is tied up in real estate assets.

A Sale-Leaseback Transaction Is