A Lake Mary office equipment lease runs 12 months at $1,850 per month. After 5 months have been used, what remaining lease commitment should be tracked?
Correct Answer
C) $12,950
Remaining lease commitment equals unexpired months multiplied by the monthly lease amount.
Why This Is the Correct Answer
Remaining lease commitment equals unexpired months multiplied by the monthly lease amount.
Why the Other Options Are Wrong
Option A: $22,200
$22,200 is above the supported result for lease commitment; it likely adds an unsupported amount or compares the wrong financial base.
Option B: $9,250
$9,250 is below the supported result for lease commitment; it likely uses the wrong base, period, or account bucket.
Option D: $31,450
$31,450 is above the supported result for lease commitment; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Remaining and unexpired live in different drawers; Office Manager tells which opens.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Business Administration, Office Lease and Equipment Commitments; use the stated business record or control rule to verify the answer.
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