A Marco Island startup will lease an yard lease for 24 months at $2,800 per month. What lease commitment should be tracked?
Correct Answer
C) $67,200
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: $2,800 insurance evidence file
$2,800 insurance evidence file is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option B: $2,824 banking setup log
$2,824 banking setup log is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option D: $64,400 tax registration packet
$64,400 tax registration packet 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.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?