What Is the Amount of the Total Liabilities at December

question 13

Multiple Choice

What is the amount of the total liabilities at December 31?

• A)$4,650
• B)$8,650
• C)$5,700
• D)$9,700

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Definitions:

Yearly Periodic Lease

A lease agreement that automatically renews each year unless terminated by either party.

Termination Clause

A provision within a contract that outlines the conditions under which the contract may be terminated before its natural end date.

Notice of Termination

A written statement provided by one party to another indicating the intention to end an agreement or employment at a specified time.

Commercial Lease

An agreement between a landlord and a business to rent commercial property.