Alice Has an Easement Over Betty's Adjoining Property

question 34

Multiple Choice

Alice has an easement over Betty's adjoining property. Alice sells her property to Martha. The easement will

• A) be terminated by the sale.
• B) revert to Betty who may or may not grant it to Martha.
• C) become public domain.
• D) runs with the land and will pass to Martha automatically.

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Definitions:

Cost of Goods Sold

Cost of Goods Sold (COGS) refers to the direct costs attributable to the production of the goods sold by a company.

IFRS

International Financial Reporting Standards, which are a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation of financial statements globally.

Inventories

Items held for sale in the ordinary course of business, as well as materials and components intended for use in the production process.

GAAP

A universally recognized set of rules and standards for financial reporting, applied within a specific legal territory, known as Generally Accepted Accounting Principles.