Where a Sale and Leaseback Arrangement Involves the Benefits and Risks

question 11

Multiple Choice

Where a sale and leaseback arrangement involves the benefits and risks of ownership being maintained by the lessee.

• A) The lease back is classified as a finance lease.
• B) The owner has effectively refinanced the asset.
• C) Any profit on the sale should be deferred in the balance sheet and amortised.
• D) The owner has managed to obtain funds from the sale but also maintained control of the asset.
• E) None of the given answers.

---

Definitions:

Juxtaglomerular Apparatus

A specialized structure in the kidney involved in blood pressure regulation by secreting renin in response to blood pressure changes.

Efferent Arteriole

An efferent arteriole is a small artery that emerges from the glomerulus in the kidney, carrying filtered blood away from the glomerulus to the capillaries of the kidney tubules.

Angiotensin II

A hormone that causes blood vessels to constrict, resulting in increased blood pressure, and stimulates the release of aldosterone from the adrenal glands.

Aldosterone Secretion

The release of aldosterone, a steroid hormone, from the adrenal cortex, which regulates sodium and potassium balance in the blood.