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Assume that Kendra is starting her own management consulting business. On September 1 st she signed a one year lease. Her monthly rent is $

Assume that Kendra is starting her own management consulting business. On September 1st she signed a one year lease. Her monthly rent is $4,000 and on September 1st she paid, in cash, for six months rent ($24,000). Kendra did not, on September 1st, recognize any of the expenditure as an expense. Why does that make sense?

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