A 'sale-and-leaseback' transaction:

Question

Quizplus · Accepted Answer

A sale-and-leaseback transaction can be classified as either a finance lease or an operating lease depending on the terms of the lease agreement. It involves selling an asset to a lessor and then leasing it back from them for a specific period of time. If the lease agreement transfers the risks and rewards of ownership to the lessee (the seller of the asset), it is classified as an operating lease. If the lease agreement transfers substantially all the risks and rewards of ownership to the lessee (the seller of the asset) and meets certain other criteria, it is classified as a finance lease.

A 'Sale-And-Leaseback' Transaction