Which of the following living expenses should be included in the budget of someone renting an apartment?

• A. Rent payment
• B. Mortgage interest
• C. Property tax
• D. Depreciation expense

Answer: (A)

Verified step by step guidance

1. Understand the context of the problem: The question is asking which living expenses should be included in the budget of someone renting an apartment. This requires distinguishing between expenses relevant to renters versus homeowners.
2. Identify the expenses listed: Rent payment, mortgage interest, property tax, and depreciation expense. Analyze each expense to determine its relevance to a renter's budget.
3. Evaluate 'Rent payment': Rent payment is a direct expense for someone renting an apartment and should be included in their budget.
4. Evaluate 'Mortgage interest' and 'Property tax': These expenses are typically associated with owning a home, not renting. Therefore, they are not relevant to a renter's budget.
5. Evaluate 'Depreciation expense': Depreciation expense is an accounting concept related to the reduction in value of an owned asset over time. It is not applicable to renters, as they do not own the apartment. Thus, it should not be included in the budget.