A lease under which a lessee sells an asset for cash to a prospective lessor and then leases back the same asset is called a(n) ________.
A) operating lease
B) leveraged lease
C) sale-leaseback arrangement
D) direct lease

Question

Quizplus · Accepted Answer

A sale-leaseback arrangement involves the sale of an asset by the owner to a lessor, who then leases the asset back to the original owner. This type of lease is commonly used by companies to raise cash without having to sell their assets outright or to finance the purchase of new assets. This type of lease is also known as a "lease and buyback" or a "sale and leaseback" arrangement.

A Lease Under Which a Lessee Sells an Asset for Cash