Understanding Leasehold and Amortization

Understanding Leasehold and Amortization

University

10 Qs

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Understanding Leasehold and Amortization

Understanding Leasehold and Amortization

Assessment

Quiz

Business

University

Medium

Created by

Rakesh Kumar Julka

Used 1+ times

FREE Resource

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a leasehold?

A type of ownership where the property is owned outright.

A type of property tenure where a lessee holds rights to use the property for a specified period.

A legal document that transfers ownership of a property.

A financial agreement to purchase a property over time.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is NOT a type of leasehold?

Fixed-term leasehold

Periodic leasehold

Freehold leasehold

Tenancy at will

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are leasehold improvements?

Changes made to a property by the landlord to increase its value.

Modifications made by the tenant to a leased space to better meet their needs.

Repairs made to a property to maintain its current condition.

Legal changes to the terms of a lease agreement.

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is a common method of amortization?

Straight-line method

Declining balance method

Sum-of-the-years'-digits method

All of the above

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does amortization of leasehold improvements impact financial statements?

It increases the cash flow of the company.

It is recorded as an expense on the income statement over time.

It is recorded as a liability on the balance sheet.

It has no impact on financial statements.

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the legal aspect of a leasehold that differentiates it from freehold?

Leasehold grants permanent ownership of the property.

Leasehold is a temporary right to use the property.

Leasehold allows the lessee to sell the property.

Leasehold does not require a legal agreement.

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best describes a fixed-term leasehold?

A lease that automatically renews after a certain period.

A lease with no specified end date.

A lease with a predetermined start and end date.

A lease that can be terminated at any time by either party.

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