If a tenant pays rent for January 2022 in December 2021, the leasing firm for the flat will report this as a liability in 2021. The correct answer is option C.
A legal debt or obligation that an entity is required to repay is known as a liability. An entity could, for instance, be a person or a business. Liabilities are the debts a firm has, whereas assets are the things it owns. the limitation of an owner's liability to the amount of capital they have invested in the company.
Like an apartment, a tenant is. When comparing an apartment to an apartment complex, the complex refers to the building's structure, plumbing, stairs, and elevators. And the complex may contain a large number of apartments.
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