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:

Gordon's Jewelers

A jewelry retailer known for selling a variety of jewelry items, often focusing on diamond and fine jewelry.

Periodic System

An accounting system where inventory is updated at specific periods rather than continuously, typically used for calculating cost of goods sold at the end of an accounting period.

Ending Inventory

The aggregate value of products available for purchase at the conclusion of a financial period.

LIFO Method

Last In, First Out method; an inventory valuation technique where the latest items added to inventory are the first ones removed during sales.