객관식
Which of the following statements about the Land account is accurate?
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1. Introduction to Accounting
Types of Accounting
객관식
Kate plans to rent instead of buying her housing. Which of the following is an advantage of renting that she will realize?
A
Eligibility for mortgage interest tax deductions
B
Ability to build equity in the property
C
Freedom from paying monthly rent payments
D
Lower upfront costs compared to purchasing a home
검증된 단계별 안내1
Understand the context of the problem: Kate is considering renting instead of buying a home. The question asks about the advantages of renting, specifically focusing on financial aspects.
Analyze the options provided: The first three options (eligibility for mortgage interest tax deductions, ability to build equity, and freedom from paying monthly rent payments) are benefits associated with owning a home, not renting.
Focus on the correct answer: Renting typically involves lower upfront costs compared to purchasing a home. This is because renters do not need to make a large down payment or pay closing costs, which are common when buying property.
Explain why renting has lower upfront costs: When renting, the initial expenses are usually limited to a security deposit and the first month's rent, whereas buying a home requires significant financial commitments such as a down payment, closing costs, and other fees.
Conclude the reasoning: The advantage Kate will realize by renting is the lower upfront costs compared to purchasing a home, making it a more accessible option for individuals who may not have substantial savings or prefer financial flexibility.
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