Which of the Following Is True of Leases in General

question 86

Multiple Choice

Which of the following is true of leases in general?

• A)Provisions of extensions should be drafted separately.
• B)Long-term leases need to be carefully drafted.
• C)They are the most important in matters of residential property.
• D)There are no laws regulating leases,only local housing codes.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and net income.

Balance Sheet

A report detailing a company's assets, liabilities, and equity of shareholders at a certain date.

Net Profit/Pretax Profit Ratio

A financial metric that compares the net profitability of a business to its earnings before taxes, indicating the portion of income retained after accounting for all expenses.

Leverage Ratio

A financial ratio that measures the amount of debt used in a company's financing structure relative to its equity or other assets.