Which of the Following Is an Advantage of Renting

question 95

Multiple Choice

Which of the following is an advantage of renting?

• A) Noise from parties may be monitored closely.
• B) Renters have fewer responsibilities than home owners.
• C) Tenants cannot take tax deductions for mortgage interest and property taxes.
• D) Tenants may be subject to restrictions regarding decorating.
• E) All of these are advantages of renting.

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Definitions:

Cost-to-retail Ratio

A method used to estimate the value of ending inventory based on the ratio of the cost of goods available for sale to the retail price of those goods.

Ending Inventory

The worth of products ready for sale at the close of an accounting cycle, determined by adding the initial inventory and purchases, then subtracting the cost of goods sold.

Retail Inventory Method

An accounting method used to estimate inventory value by calculating the cost to retail price ratio.

Cost To Retail Ratio

A method used in retail to calculate inventory value by comparing the cost of goods to their retail price.