The landlord records the security deposit she collects from the tenant as a(n)
A)asset.
B)liability.
C)contingent liability.
D)contra liability.

Name: The landlord records the security deposit she collects from the tenant as a(n) A)asset. B)liability. C)contingent liability. D)contra liability.
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Question

Quizplus · Accepted Answer

The security deposit is recorded as a liability because it represents an obligation for the landlord to return the deposit to the tenant at the end of the lease term, assuming all conditions are met.

The Landlord Records the Security Deposit She Collects from the Tenant