A Tenant Makes a Verbal Agreement, in Front of Several

question 12

Multiple Choice

A tenant makes a verbal agreement, in front of several people, to lease a home for six months. Two months later the tenant notifies the landlord that he or she will be moving out next week. The lease agreement is:

• A) not valid for lack of writing
• B) binding although oral
• C) invalid because it was for only 6 months
• D) binding because it was a one-family residence

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Definitions:

Loss on Sale

The financial loss incurred when the selling price of an asset is less than its carrying amount on the books.

Patent Amortization

The systematic reduction of the recorded cost of a patent over its useful life to reflect its consumption or expiration.

Operating Section

The segment of a financial statement that details revenues and expenses directly related to the core business operations.

Net Income

Net Income, or net profit, is the total earnings of a company after subtracting all expenses, including taxes, interest, and operating expenses, from its total revenue.