19-18.If an owner sells a property under a sale-leaseback agreement he or she may be required to continue to show the property on:

Question

Quizplus · Accepted Answer

If an owner sells a property under a sale-leaseback agreement, the owner would receive cash from the buyer and agree to lease back the property from the buyer. The property would still be considered an asset and would be shown on the balance sheet as such. Choice A is incorrect because the property is no longer a liability of the owner. Choice B and D are also incorrect because the owner is no longer expensing or earning revenue from the property.

19-18If an Owner Sells a Property Under a Sale-Leaseback Agreement