Valid Restrictive Covenants Will Bind Future Owners of the Land

question 40

Multiple Choice

Valid restrictive covenants will bind future owners of the land if:

• A) they are published in the Federal Register.
• B) there is a notation in the deed referencing the restrictive covenants.
• C) they are published in a newspaper of general circulation.
• D) they are filed with the attorney general of the state in which the land is located.

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Definitions:

Long-lived Assets

Assets expected to provide economic benefits over a period longer than one year, such as buildings, machinery, and equipment.

Capitalizes Expenditures

The process of recording a cost as an asset, rather than an expense, to be written off over the future period.

Rate-of-Return Comparisons

A method of evaluating the profitability of different investments by comparing their rates of return.

Operating Cycles

The period of time it takes for a business to purchase or create inventory, sell the products, and collect cash from the sales.