Which of the Following Occurs If a Tenant Moves Out

question 53

Multiple Choice

Which of the following occurs if a tenant moves out of leased premises before the end of the term,has no intent to return,and had defaulted on rent payments?

• A) Forfeiture
• B) Negation
• C) Surrender
• D) Refusal
• E) Abandonment

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Definitions:

Contribution Format

A type of income statement where costs are separated into variable and fixed categories, highlighting the contribution margin.

Absorption Costing

A financial methodology that includes every cost related to producing a product—direct materials, direct labor, and both kinds of overhead expenses (variable and fixed), into the product’s final cost.

Ending Finished Goods

Ending Finished Goods are the inventory of completed products that are available for sale at the end of an accounting period.

Net Operating Income

This is the profit a company makes from its operations, after all operating expenses have been subtracted from revenues but before taxes and interest are deducted.