A Fort Pierce startup will lease an office trailer for 18 months at $1,350 per month. What lease commitment should be tracked?
Correct Answer
A) $24,300
Lease commitment equals monthly payment multiplied by term.
Why This Is the Correct Answer
Lease commitment equals monthly payment multiplied by term.
Why the Other Options Are Wrong
Option B: $1,350 license setup record
$1,350 license setup record is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option C: $1,368 business audit note
$1,368 business audit note is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option D: $22,950 insurance evidence file
$22,950 insurance evidence file is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Memory Technique
Office Manager money test: bucket before math for lease commitment.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Startup facilities and equipment lease planning; verify the startup duty, registration, or financial setup before answering.
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