A Wauchula startup will lease an copy equipment for 36 months at $420 per month. What lease commitment should be tracked?
Correct Answer
B) $15,120
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 A: $420 business audit note
$420 business audit note is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option C: $456 insurance evidence file
$456 insurance evidence file is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option D: $14,700 banking setup log
$14,700 banking setup log is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Memory Technique
Monthly and payment live in different drawers; Office Manager tells which opens.
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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