An Arrangement in Which a Tenant Transfers Some of His

question 64

Multiple Choice

An arrangement in which a tenant transfers some of his or her rights under a lease to another party is known as a ________.

• A) gross lease
• B) net lease
• C) sublease
• D) triple lease

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Definitions:

Dealer Profit

The margin or financial gain a dealer achieves from the buying and selling of products or securities.

Unearned Interest Income

It is the interest earned on investments or loans that has been recorded but not yet received in cash.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at the end of the lease term at a price significantly lower than the expected fair market value.

Fair Value

An estimate of the market value of an asset or liability based on current prices in active markets for similar assets or liabilities.