A sale and leaseback arrangement must be disclosed on the ﬁrm's balance sheet, according to
generally accepted accounting principles.

Question

Quizplus · Accepted Answer

A sale and leaseback arrangement involves the sale of an asset and the leasing back of that same asset. As a result, the arrangement must be disclosed on the firm's balance sheet in accordance with generally accepted accounting principles.

A Sale and Leaseback Arrangement Must Be Disclosed on the ﬁRm's