The city of Plainview sold some buildings and used the proceeds to improve its financial position. The city then leased the buildings back in order to continue to use these facilities. This is an example of:

Question

Quizplus · Accepted Answer

This transaction is a sale and leaseback, where the city sold the buildings (sale) and then leased them back. This allows the city to obtain cash from the sale while still being able to use the facilities through the lease. Options A, B, and D do not accurately describe this transaction.

The City of Plainview Sold Some Buildings and Used the Proceeds