When used for elementary and secondary schools, the main distinction between a 529 and a Coverdell is that a 529 can only be used for tuition, whereas a Coverdell can be used to pay for tuition as well as other school expenses.
A 529 savings plan is more flexible overall but has fewer investment alternatives than a Coverdell savings account since it is only open to families with beneficiaries who meet specified income and age requirements.
The annual contribution cap for Coverdell ESAs is $2,000. That is much less than what you are permitted to put into 529 plans. Lifetime contribution caps for most 529 plans are $350,000 and higher. The eligibility to open a Coverdell ESA account is also based on income.
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knowledge check 01 most companies compute the materials price variance when raw materials are . multiple choice received from suppliers and transported to raw materials inventory. withdrawn from raw materials inventory and used in production. ordered from suppliers. moved from work in process inventory to finished goods inventory.
Most companies compute the materials price variance when raw materials are purchased and transported to raw materials inventory.
When the actual price paid for materials used in production differs from the standard price for the materials, there is a material price variation (MPV). If the actual cost of the materials is less than the benchmark cost, the material price variance will be favorable.
The Material Price Variance will, however, be negative if the cost of the materials is higher than the benchmark cost.
Only a few of the causes of a material price variation include an increase in price, changes in transportation costs, changes in the volume of the order, changes in the quality of the materials being purchased, and other factors.
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a firm has the following order history over the last 6 months (see appended information). what would be a 4-month weighted moving average forecast for july using weights of 30% for the most recent month, 50% for the month preceding the most recent month and 40% for the month preceding that one and 20% for the last month? is the actual demand over the last four months indicative of a trend (i.e. time series trend characteristic) according to company forecasters?
A : 137.5
June is the most recent month.
May is the month preceding the most recent month.
April is the preceding month.
March was the previous month.
Actual Demand over the last four months = (Demand- June * 0.3) + (Demand - May * 0.5) + (Demand-April *0.4) + (Demand - March *0.2)
Actual Demand over the last four months = (25* 0·3)+ (200*0.5) + (25*0₁4) + (100 * 0.2)
Actual Demand over the last four months = 7.5 +100+10+20
Actual Demand over the last four months = 137.5
Therefore, A = 137.5
Furthermore, we can see a pattern in which the odd months have a high interest while the even months have low interest; thus, keeping the pattern in mind, the interest for July is very high. As a result, the correct option is A = 137.5, the Actual Demand over the last four months
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The complete question is:
A firm has the following order history over the last 6 months (see appended information). what would be a 4-month weighted moving average forecast for July using weights of 30% for the most recent month, 50% for the month preceding the most recent month and 40% for the month preceding that one and 20% for the last month? is the actual demand over the last four months indicative of a trend (i.e. time series trend characteristic) according to company forecasters?
Month Actual Demand
January 120
February 95
March 100
April 25
May 200
June 25
Answer options:
A. 137.5
B. 137.5
C. 40
D. 42.5
E. 40
the united states raised the dollar price of gold by nearly $15 per ounce in 1934. what was the result?
The result of raising the dollar price led to consumer prices getting doubled.
In the United States, consumer prices have approximately doubled since the Roosevelt government increased the dollar price of gold in 1934. As a result, gold's price had to climb since the dollar was overpriced in relation to gold until gold was abandoned as the foundation for a medium of exchange. American officials, on the other hand, claimed that the $35 price of gold was "immutable."
In order to avoid being caught with too many dollars on their hands, foreign creditors would instigate a run on the gold supply if they felt that this country was about to devalue. Everyone who had dollars in their possession before the devaluation would experience significant losses since more dollars would be needed to purchase a given amount of gold.
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at the end, willy decides he is better off dead because the insurance money will take care of linda and the house. however, what do neither of them realize?
In the end, Willy decides he is better off not alive because the insurance money will take care of Linda and the house. However, neither of them realizes that Willy this step to provide for Linda and the children.
Finally, Willy makes the decision to leave the world. Not just because he recently lost his work, with which he was barely making enough money to cover basic bills at the time.
He does it mainly because he believes that Biff will be able to do something with the life insurance payoff, enabling at least one of the Lomans to realize his unattainable ambition of enormous wealth and success.
This proposal of Biff infuriates Willy to no end since it implies that he will not take the $20,000 and turn it into a fortune. Linda also thinks his action proves he didn't love her because it leaves her all alone.
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mary is a licensed real estate professional. she only performs licensed real estate activities and does not receive any compensation from lenders, mortgage brokers, or other mortgage-related parties. does she need an mlo endorsement?
Yes, mary needs an MLO endorsement as she is engaged in a licensed real estate selling and purchasing property activity.
What is an MLO Endorsement?A mortgage lender (MLO) is an individual or institution that helps potential borrowers obtain suitable mortgages for real estate transactions. MLOs are the first mortgage lender and work with borrowers through the application, approval, and closing process. An MLO is either a loan company, a mortgage broker, or a loan officer.A mortgage originator is defined as a person who assists a borrower through the mortgage application process and loan closing.A mortgage lender is either a bank or financial institution that originates and sells mortgages, but the term can also apply to anyone employed to help obtain a mortgage. People who act as mortgage lenders are also known as loan officers.Mortgage originators assist borrowers through the mortgage application process and loan closing. This may include gathering credit and financial information, evaluating your needs and financing options that make sense to you, negotiating interest rates, and submitting underwriting applications.Thus, mary needs a mlo endorsement because it acts as a unique identification number on her business card.
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mayan company had net income of $33,580. the weighted-average common shares outstanding were 9,200. the company has no preferred stock. the company's basic earnings per share is:
The company's basic earnings per share are $ 3.65
Earnings per share = 33580/9200
= $ 3.65
Stocks are devices of fair possession in a corporation. For some companies, stocks exist as an economic asset supplying an identical distribution of any residual income, if any are declared, in the shape of dividends.
Proportion trading method buying and selling stocks of businesses listed on the 2 main stock exchanges - the Bombay inventory alternate (BSE) and the national stock change (NSE). The purchaser of the shares receives sure possession in the agency. he's entitled to a percentage of a stake inside the enterprise.
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your company wants to have greater success online. what are two ways that ads can drive your business goals
Your company wants to have greater success online and the two ways that ads can drive your business goals are, boosting the conversions by connecting to buyers at the moment that matter and maximizing exposure by reaching a wider audience.
Conversions are crucial for online business as they allow to identify the customers who are interested in the products. It ensures whether the marketing funnels are working for desired results or not. It analyses what the customers look for, the source of the traffic to the website, stages where customers face the problem, and other leads. It identifies whether the website works properly or not.
Ads also maximize the exposure of the online business and help reach a wider audience. It helps in reaching the target audience by displaying ads to selected customers. It promotes the business by using various formats.
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What role do executive departments and agencies play in fulfilling the constitutional duties of the executive branch?.
Under Article II of the Constitution, the President is accountable for the execution and social control of the laws created in fulfilling the constitutional duties.
Fifteen government executive departments — every LED by Associate in Nursing appointed member of the President's cupboard — perform the day-after-day administration of the national.
The U.S. Department of Health and Human Services (HHS) is the U.S. government's principal agency for shielding the health of all Americans and providing. The President will draw on 3 sources to issue an Associate in Nursing government action (a government action is an Associate in Nursing government order or memorandum).
The Cabinet and freelance Federal agencies are accountable for the day-after-day social control and administration of Federal laws.
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a security analyst and their team go through the entire list of assets in the company and assign each item a level of priority. then they group the assets in the same levels together so they can create defense strategies for each group. what is this process called?
a security analyst and their team go through the entire list of assets in the company and assign each item a level of priority. then they group the assets in the same levels together so they can create defense strategies for each group. This process is called Bundling critical assets.
What are the Primary Asset Types?A resource is an asset if it is held or controlled by a person, business, or government with the intention of reaping financial rewards. Current, non-current, physical, intangible, operating, and non-operating assets are examples of common asset kinds. For a firm to survive, particularly in terms of its solvency and associated risks, it is essential to correctly identify and categorize the different types of assets.
According to the International Financial Reporting Standards (IFRS) framework, an asset is a resource that the business controls as a result of historical occurrences and from which it anticipates future financial gains.
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2. (1pt) what is the value of an infinite series of $50 semiannual payments growing at a rate of 4% every six months and with a discount rate of 10% apr compounded semiannually? how would your answer change if the growth rate was 5% every six months?
It usually multiplies by 100 to show the difference in GDP between one period and the next. This difference is expressed as a percentage of GDP from the previous period.
The value of the infinite series of payments is calculated as follows: Value = PMT/(r - g) Value = 50/(0.10 - 0.05) Value = 50/0.05 Value = $1,000 The value of the infinite series of payments with a growth rate of 5% Growth rate every six months, g = 5% = 0.05 APR = 20% compounded semiannually s = Number of semi-annual periods per year = 2
How is the perpetuity growth rate calculated?g is the increase in cash flows over time. The terminal value in year n (for instance, year 5) is the product of the growth rate and the free cash flow from year 5 multiplied by 1 divided by the WACC (w) – growth rate (g).
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ashburn corporation issued 15-year bonds two years ago at a coupon rate of 7.6 percent. the bonds make semiannual payments. if these bonds currently sell for 106 percent of par value, what is the ytm?
The respect development of the securities is the rebate rate that compares the cost of the cling to the amount of limited coupons and the development standard worth of the security. The riskiness of the bond determines the yield to maturity.
Why is yield to maturity so significant?The term "yield to maturity" (YTM) refers to an investment's cash flow over time and is closely related to bond yield. A long-term bond yield is the total return on a bond that is anticipated when the bond matures and is expressed as an annual return.
What factors influence a bond's yield to maturity?Yield to maturity takes into account the following elements. Coupon rate: The yield of a bond or CD is proportional to its coupon rate, or interest payment. This is due to the fact that the bond or CD will accrue interest at a higher percentage of its face value each year. Cost — The higher a security or Cd's value, the lower its yield.
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the baxters are looking at a $425,000 home. they have $90,000 in savings to use as a down payment. what loan type(s) would likely be the best option for them?
Conventional people act or think in a way that is typical and expected.
What else does the word "conventional" mean?
The terms formal, ceremonious, and ceremonial are frequently used synonyms for conventional.Even though "marked by attention to or adhering strictly to prescribed forms" is the meaning of these words, "conventional" can also mean "according with general custom and usage" and "may suggest a stodgy lack of originality or independence."ordinary politeness.
What is an illustration of a conventional?
These things are always depicted using standard signs and symbols. These are small cups with typical eagle, lion, and griffin designs that have been deeply and crudely cut out.
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in a perfectly competitive market with 5,000 firms, the equilibrium price and quantity are $0.70 and 3.0 million units. the demand curve facing a firm in this market is represented by:
The demand curve facing a firm in a perfectly competitive market is represented by a horizontal line at a 0.70 equilibrium price.
What is perfectly competitive market?A perfectly competitive market is one in which the number of buyers and sellers is very large, all engaged in buying and selling a homogeneous product without any artificial restrictions and possessing perfect knowledge of market at a time.
In a perfectly competitive market, a firm cannot change the price of a product by modifying the quantity of its output.
In a perfectly competitive market, the price of a product is determined by the forces of market demand and market supply and the price is set at such a level that the quantity demanded is equal to the quantity supplied. In terms of the demand and supply curves, this occurs where the market demand and the market supply curves intersect.
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what is collusion? a merger of two sellers agreements between sellers to increase their market power regulatory restrictions on the entry of new sellers into an industry cooperation between sellers to increase the level of competition
A non-competitive, secret, and even unlawful agreement between rivals to upset the market's equilibrium is known as collusion.
Collusion occurs when parties that would typically compete with one another decide to work together in order to obtain an unfair competitive advantage. The parties to a collusion agreement may decide to jointly adjust the supply of a good on the market or settle on a predetermined price point that enables the partners to maximize their profits at the expense of other rivals.
Across various market types, there are numerous ways that collusion might manifest itself. Organizations as a whole benefit unfairly in each situation. Price fixing is one of the most prevalent forms of collaboration. Prices may be artificially increased to support group interests at the expense of the customer or may be forcibly reduced to eliminate smaller competitors. In general, price fixing can limit or eliminate competition while also raising obstacles for potential entrants even further.
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masters, inc. prepares a budget that always includes 12 months of data. as each month ends, it is removed from the budget, and another month is added. masters uses which type of budget?
Masters, inc. creates a budget that always includes data for the previous 12 months. Each month is removed from the budget as it ends, and another month is added. Master uses a continuous budget.
What is a continuous budget?
The process of continuously adding one additional month to the end of a multi-period budget as each month passes is known as continuous budgeting. Because the continuous budgeting concept is typically applied with a twelve-month budget, there is always a full-year budget in place.
A business's capacity to produce a top-notch budget is significantly increased if it chooses to adopt continuous budgeting for a shorter time frame, like three months. Since sales forecasts are typically significantly more accurate over short time frames, the budget can be changed based on fairly plausible predictions of business activity.
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Your store sales average 190000 per month your triple net lease has tbe following monthly terms: rent is 5% of sales insurance is 300 maintenance is 75 utilities total 300 and taxes are 120 you expect next years sales to increase 5% but your lease terms will remain the same calculate the next years annual leade payment
The next year's annual lease payment is $129,240. The term “Lease Payment” is analogous to the rental payment. It refers to the payment created between the owner and renter, per the contract.
A Lease payment refers to the amount that's adequate for the monthly rent prearranged in an exceedingly contract by 2 parties.
Step 1: Verify next year's regular payment.
Since next year, the sales regular payment can have increased by seven-membered, we can verify next year's annual sales as shown:
F=P(1+R)
where;
Next year regular payment
This year's regular payment
R=salary increase rate
In our case;
F=unknown, to be determined
P=190,000 per month
P=(190,000×12)=$2,280,000 annually
R=5%=5/100=0.05
replacing;
F=2,280,000(1+0.05)=$2,394,000
Step 2: Verify next year's rent.
Next years rent=0.05×2,394,000=$119,700
Step 3: Verify insurance, maintenance, utilities and total annual taxes.
Total=annual insurance payments+annual maintenance payments+annual utilities payments+annual taxes
Total=(300×12)+(75×12)+(300×12)+(120×12)=$9,540
Step 4: Verify next year's annual lease payments.
Next year's annual lease payments=next year's rent payment+ insurance+maintenance+utilities+annual taxes
where;
Next year's rent payment=$119,700
Insurance+maintenance+utilities+annual taxes=$9,540
replacing;
Next years annual lease payments=(119,700+9,540)=$129,240
Next year's annual lease payments=$129,24
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when an investor is looking for large and growing markets with the opportunity to build a large company, the domain they are focusing their attention on is select one: a. macro market b. micro market c. macro industry d. micro industry
The domain they are focusing their attention on macro industry. Any macro-level decision is one that does not deal with the micro-level decisions of management structures and product management.
External influences and the issues they cause are more of a focus for macro-level issues. A company's strategic management includes macro environment analysis, which enables it to domain and identify prospective possibilities and risks that could have an impact on the firm. The objective is to provide management with information that will help them make operational decisions in advance. Trade, industrial organisation and market structure, labour economics, public finance, and welfare economics are all areas where microeconomics is used.
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the makers of tide laundry detergent partnered with the makers of febreze air fresheners to come up with a new line of laundry detergent infused with febreze scents. in turn, febreze also came up with a new air freshener featuring tide's original scent. this is an example of
The makers of tide laundry detergent partnered with the makers of Febreze air fresheners to come up with a new line of laundry detergent infused with Febreze scents. in turn, Febreze also came up with a new air freshener featuring tide's original scent. this is an example of co-branding.
Tides are very long-length waves that flow via the ocean in response to the forces exerted by the moon and sun. Tides originate inside the ocean and development toward the coastlines where they seem because of the normal upward thrust and fall of the sea floor.
Flood Tide – Over a length of numerous hours there might be an upward push in the sea stage. excessive Tide – that is a degree wherein the water reaches its most degree. Ebb Tide – this is a stage where the sea level keeps receding over several hours. Low Tide – the level of Seawater stops receding.
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members of the international monetary fund may settle transactions among themselves by transferring special drawing rights (sdrs). group of answer choices true false unsure
Members of the International Monetary Fund may settle transactions among themselves by transferring Special Drawing Rights (SDRs). This statement is TRUE.
What are Special Drawing Rights?
The term "Special Drawing Rights" (SDR) refers to a form of international reserve currency established by the International Monetary Fund (IMF) in 1969 as an addition to the existing foreign exchange reserves of member nations. The SDR interest rate (SDRi) serves as the foundation for figuring out the interest rate levied against member nations when they borrow money from the IMF and the interest rate given to members for their paid creditor roles in the organization.
SDRs can be exchanged for other currencies, used for loan repayment, obligation payments, pledge payments, loan interest payments, or to enhance quota amounts.
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according to the ife, if british interest rates are lower than u.s. interest rates a. the british pound will depreciate against the dollar. b. the british inflation rate will decrease. c. the british pound will appreciate against the dollar. d. today's forward rate of the british pound will equal today's spot rate. e. the british pound's value will remain constant.
According to the IFE, if British interest rates exceed U.S. interest rates the British pound will depreciate against the dollar.
The British pound is the official currency of the United Kingdom. The pound sterling is the fourth most-traded currency in the foreign exchange market. It is also the third-largest reserve currency after the U.S. dollar and the euro.
The British interest rates at a record low of 0.5% since March 2009 in an effort to support the UK economy during the recession. However, with the economy now showing signs of recovery, there is growing speculation that interest rates will start to rise in the near future.
Hence, the correct option is "A".
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when using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories. when using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories. true false
When using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories. when using a weighted-criteria evaluation system with five or more categories, suppliers should be ranked based on their score in only the two highest weighted categories. The given statement is false.
A decision-making tool that evaluates potential options against some strong factors is called a weighted criteria matrix. Deciding between optional solutions and selecting the most common and striking software application to purchase. The weighted scores can be calculated by multiplying the weight for each criterion by its score and adding the resulting values.
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the harmonization of member nations' tax rates plus a common monetary and fiscal policy are all required to form a(n)
The harmonization of member nations' tax rates plus a common monetary and fiscal policy are all required to form an economic union.
An economic union is an arrangement between two or more countries that permits unrestricted trade in commodities, services, money and labor. To foster this unified market, the nations may also coordinate their social and financial policies. An economic union is made up of a common market and a customs union. The participating nations share a similar external trade policy as well as shared rules on product regulation, the free flow of products, services and production factors.
One example of an economic union is the European Union (EU). In order to collaborate on addressing economic and financial difficulties, the EU member states coordinate their separate economic policies, rules and regulations. The Euro, which is used by all 19 EU countries, is the official currency.
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there is a cost function such that marginal cost is always less than average cost. what must be true about average cost?
The average variable cost is falling when marginal cost is lower than average variable cost. It is untrue to say that "the average cost can never be equal to the marginal cost."
When the average cost is constant and at its lowest level, the average cost and marginal cost are identical. The marginal cost is lower than the average cost as the average cost drops. The marginal cost is higher than the average cost when the average cost rises. The marginal cost is equal to the average cost when the average cost remains the constant (at a minimum or maximum).
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calculate the total cost of land if the purchase price was $150,000; the real estate broker commission were $10,000, and the demolition cost for the old building was $5,000.
The total cost of land will be 165,000 if the purchase price was $150,000; the real estate broker commission were $10,000, and the demolition cost for the old building was $5,000.
The total variable and fixed costs of a batch of goods or services are determined using the total cost formula. For calculating the overall cost of a product or product line, these data may be helpful.
Calculating the average total cost is a crucial step in your accounting process when pricing your goods and services. Making sure your product prices are high enough to cover both your variable and fixed costs is done in this stage. The total cost formula assists firms in calculating their overall operating costs.
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According to the course materials, which of the following is the single largest contributor to the probability that a firm will end up in financial distress?Broad economic conditionsThe firm’s industryThe amount of leverage in the firm’s capital structureThe competence of the firm’s management
The single largest contributor to the probability that a firm will end up in financial distress according to course materials is C. The amount of leverage in the firm’s capital structure.
What leads to financial distress?A company is said to be financial distress when it does not have enough money to cover its operational and otherwise needs. This often happens when a company has borrowed too much and therefore exhausted the credit facilities it had.
This means that the single largest contributor to financial distress in the future of a firm is the amount of leverage that it has in its capital structure. More leverage increases the probability of financial distress.
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understand the different types of pricing objectives and how pricing affects each one:] a. survival b. profit c. return on investment d. market share e. cash flow f. status quo g. product quality
Only in special circumstances or on a temporary basis may survival pricing be used.
How does pricing policy impact an organization's ability to survive?Many operations of the firm's activities are directly correlated with a product's price. Demand will be impacted by a price decision, which in turn will have an impact on the firm's income. Similar to this, a profitable company tends to draw in more new funding.
How price impacts revenue?Your pricing approach will have an impact on the profit margin you make on each unit sold; assuming you don't lose sales, charging more will result in a higher profit margin. In contrast, higher pricing that result in lower sales volumes might reduce or even erase your profits because your overhead costs per unit rise as you sell fewer units.
What is ROI and how is it impacted by pricing?ROI is to quantify the relationship between an investment's return and cost. ROI is calculated by dividing the benefit (or return) of an investment by its cost. A percentage or ratio is used to represent the outcome.
How market share is impacted by pricing?Customers' interest and loyalty can be attracted by offering lower and more alluring prices. The vital sales that increase market share could increase as a result. In addition to providing promotions, coupons, freebies, and other benefits to customers, a business can consider discounts on the actual cost of the goods.
How do prices impact cash flow?One of the key aspects of a company's performance that directly affects cash flow is pricing. If you overcharge for your services, your cash flow will suffer along with your profit margin. If you price things too expensive, you run the danger of pricing potential clients out who either can't or won't pay.
How do prices impact the status quo?The more that higher prices denote higher quality, the less sensitive consumers become to price. Competition pricing, also referred to as status quo pricing, is either keeping current prices (status quo) or basing prices on those of rival businesses.
How does product quality relate to price?Small pricing adjustments translate into huge quality changes when prices are low. Small price changes correspond to smaller quality changes when prices are higher. But in every situation, more expensive goods are of superior quality.
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6) which of the following would best indicate that the firm is carrying excess inventory? a. a decline in sales b. a decline in the current ratio c. a decline in days' sales in inventory d. a stable current ratio with declining quick ratios e. a rise in total asset turnover
A stable current ratio with declining quick ratios would best indicate that the firm is carrying excess inventory.
When a company has excess inventory on hand than is necessary to fulfill expected demand, this is referred to as excess inventory. This may result in several operational difficulties and budgetary limitations.
A steady current ratio with a decreasing quick ratio over time can be a sign that you've accumulated too much inventory. If a company's quick ratio is much lower than its current ratio, it may be severely lacking in other liquid assets and relying largely on inventory.
A loss of revenue results from having too much inventory. As demand for a certain product declines over time, excess inventory loses value and takes up "shelf space" that could be occupied by a newer product with a larger profit margin.
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rising business optimism and confidence will cause a: multiple choice 1 rightward shift of the aggregate demand curve. leftward shift of the aggregate demand curve. rightward shift of the aggregate supply curve. leftward shift of the aggregate supply curve. falling business optimism and confidence will cause a: multiple choice 2 leftward shift of the aggregate demand curve. rightward shift of the aggregate demand curve. rightward shift of the aggregate supply curve. leftward shift of the aggregate supply curve.
Increased optimism and business confidence will cause the aggregate demand curve to shift to the right.
The demand curve is a graph of the relationship between the price of a product and consumer demand over a certain period of time. The demand curve can be represented visually through graphs. This graph refers to the price point of a product shown on the vertical axis and the number of consumers shown on the horizontal axis. By using this demand curve graph, the company will see precisely about consumer demand for a product at a certain price, whether it is increasing or decreasing.
When the price of a product increases, the demand for that product decreases, so you can see the curve in the graph. If the curve is flat, it can be interpreted that this situation occurs when the difference between price and quantity demanded is very thin. Thus, the price point has succeeded in obtaining product demand.
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ow did the use of water as a power source limit the development of industry? multiple choice question.
The use of water as a power source limited the development of the industry as the proximity of flowing water was required for mills.
The family was altered by industrialization because it went from being a unit of production to a unit of consumption, which reduced fertility and changed how spouses, parents, and children interacted with one another. Depending on social class and occupation, this change happened unevenly and gradually. Factory owners had little influence because it was simple to hire immigrants who would work for less money in their place.
However, during the Industrial Revolution, corporate investors built mills and factories for production that used water power on a much larger scale and for various purposes, producing an extraordinary amount of textiles, shoes, paper, and iron goods for markets all over the world.
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leases with a term of one year or more are required to be in writing according to the california statute of .
Leases with a term of one year are to be in writing according to the California statute of frauds.
A verbal agreement may be used to construct a lease with a term of no more than one year. All leases, including those with monthly periods, should be reduced to writing for clarity and to lower the likelihood of controversy both during the lease term and after the tenant has surrendered the premises. According to California's Statute of Frauds, a lease must be in writing.
It has to be in writing if it has a term of more than one year or one that expires more than one year after the agreement is made. A lease with a term of ten months that starts three months after an agreement is reached is an illustration of a lease that must be in writing if it is less than a year long.
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