In Which of the Following Does a Person Have a True

question 101

Multiple Choice

In which of the following does a person have a true lease?

• A) When a person contracts for a room in a boarding house for one month.
• B) When a person's one-year lease has expired and he has paid no further rent, but remains on the premises contrary to the wishes of the lessor.
• C) When he has contracted for a warehouse for a two-week period commencing June 1, 2001.
• D) When he has been given permission to sleep on a cot in the dark room used at the photography shop where he works.
• E) When he spends the night in an inn.

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Definitions:

Return on Equity

A measure of financial performance calculated by dividing net income by shareholder's equity, indicating how well a company uses investments to generate earnings growth.

Total Debt

The sum of all owed liabilities, both current and long-term, that a company must eventually pay back.

Cash Coverage Ratio

A financial metric that measures a company's ability to cover its debt obligations with its available cash and cash equivalents.

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing net income before interest and taxes to its interest expenses.