How Does a Landlord Record the Collection of a Tenant's

question 4

Multiple Choice

How does a landlord record the collection of a tenant's security deposit?

• A) as a prepaid expense
• B) as a liability
• C) as a contingent liability
• D) as a contra liability

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Definitions:

Evaluate

To Evaluate means to systematically assess something by considering its merits, qualities, or values, usually in a detailed and analytical manner.

Internal Controls

Steps and guidelines set by a business to secure the trustworthiness of its financial and accounting information, promote ethical accountability, and inhibit fraud.

Establishment of Responsibility

An accounting control principle that ensures tasks are assigned to individuals in a way that accountability can be determined.

Segregation of Duties

A risk management and control strategy that divides tasks among different people to reduce the risk of fraud or error.