Accounting Online Program Certification Practice Test

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Prepare for the Accounting Online Program Certification Test. Use flashcards and multiple choice questions with detailed explanations. Ace your accounting certification exam with confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

How often does the company pay rent, and when was the rent raised?

Monthly; January 20X3
Quarterly; October 20X3
Bimonthly; April 20X3
Weekly; July 20X3

The correct answer is: Quarterly; October 20X3

The company pays rent on a quarterly basis, meaning rent payments are made four times a year. This arrangement helps businesses manage their cash flow more effectively as they can budget and allocate funds for rent every three months. The choice stating that the rent was raised in October 20X3 aligns with the idea that changes to rental agreements may often coincide with regular payment periods, such as quarterly intervals. In many cases, landlords choose to implement adjustments to rent during a scheduled period to minimize disruptions for tenants. Therefore, the rent being raised in October makes sense within this context. Understanding the timing of rental payments and the schedule for potential increases is crucial for financial planning and forecasting in any business setting. This knowledge helps in assessing overall expenses and preparing for future financial obligations.