James Signed a 1-Year Lease for an Apartment When He

question 22

Multiple Choice

James signed a 1-year lease for an apartment when he enrolled in Central State University.James signed a sublease with Jan for the remainder of the lease term.Assuming that this is a true sublease,to whom is Jan obligated to pay rent?

• A) James
• B) James's landlord
• C) One half each to James and James's landlord
• D) To either James or the landlord at Jan's option

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Definitions:

Debit Entries

Accounting entries that increase an asset or expense account, or decrease a liability or equity account.

Credit Entries

Bookkeeping records that increase liabilities or equity or decrease assets on a company's balance sheet.

Liability Account

A financial accounting account that represents obligations to pay debts or amounts owed to others.

Capital Account

An account showing the net worth of a business entity, including its equity and investments.