Benchmarks Are Not

question 132

Multiple Choice

Benchmarks are not

• A)points of comparison to use in evaluating financial statement amounts.
• B)prior period results of a company which provide trend information.
• C)competitor financial information to be used to evaluate a company's performance.
• D)evaluations of a single business in a single period.

---

Definitions:

Exact Interest

Interest calculated based on a 365-day year or actual number of days in a loan term, providing a precise calculation of interest charges.

Ordinary Interest

Interest calculated on the basis of a 360-day year, commonly used in banking and bond markets.

Ordinary Interest

Interest calculated based on a 360-day year, often used in banking for loans and savings accounts.

Exact Interest

Interest calculated based on a 365-day year, providing a precise interest calculation.