Which Is the Following Is Not a Usual Step in the Process

question 13

Multiple Choice

Which is the following is not a usual step in the process of buying real property?

• A)The purchaser arranges finance or a building, pest or other inspection
• B)The purchaser makes an offer
• C)The purchaser signs a contract
• D)The purchaser pays a 25% deposit

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Definitions:

Capital Assets

Long-term tangible or intangible assets owned or controlled by a business that are used to produce goods or services and are not intended for sale in the regular course of business.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is represented by the equity value.

Cost Method

An accounting approach whereby investments are recorded at their original purchase cost, without adjusting for changes in fair value, except for impairments.

Investment

The allocation of resources, such as capital or time, in the expectation of generating an income or profit.