Which of the Following Is an Accurate Statement of a General

question 25

Multiple Choice

Which of the following is an accurate statement of a general rule regarding security deposits obtained by landlords from tenants under residential property leases?

• A) If the landlord intends to retain part,but not all,of the tenant's security deposit,the landlord complies with applicable legal requirements if he verbally notifies the tenant of that intent.
• B) The landlord is not entitled to use any part of the security deposit to cover the cost of remedying ordinary wear and tear that occurred during the tenant's occupation of the property.
• C) The landlord is entitled to use any part of the security deposit as a way to recover unpaid rent.
• D) As a general rule,security deposits are generally nonrefundable unless the tenant makes a convincing written showing of why part or all of the security deposit should be refunded to him or her.

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Definitions:

Office Rent

The cost associated with leasing a space for business operations or administrative work.

Financial Break-even Point

The Financial Break-even Point is the level of revenue at which a company's total costs and total revenues are exactly equal, indicating no net profit or loss.

Net Present Value

A financial analysis method used to determine the overall value of a projected investment or project by calculating the present value of expected future cash flows.

Operating Cash Flow

Measures the cash generated by a company's normal business operations.