Which of the Following Leases Lacks Certainty of Duration and Is

question 14

Multiple Choice

Which of the following leases lacks certainty of duration and is therefore invalid?

• A)A lease for three years from 1 January 2010
• B)A lease for one year signed by the parties on 1 April 2010 but stated to commence from 1 March 2010
• C)A lease 'until the end of Semester 2, 2010'
• D)A lease 'until the tenant dies'

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Definitions:

Raw Materials Production Needs

The quantity of raw materials required to meet production targets, taking into account current inventory levels and future production plans.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.

Budgeted Cash Receipts

An estimate of all cash inflows a company expects to receive during a particular period based on expected sales or other income sources.

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services delivered on credit.