If the Annual Interest Rate Is 12 Percent, What Is

question 47

Multiple Choice

If the annual interest rate is 12 percent, what is the two-year discount factor?

• A)0.7972
• B)0.8929
• C)1.2544
• D)0.8065

---

Definitions:

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in the United States.

Receivables Accounting

The process of managing money that is owed to a company for goods or services that have been delivered but not yet paid for.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) for the preparation of public company financial statements globally.

GAAP

Commonly adhered to accounting rules and standards for financial reporting, known as Generally Accepted Accounting Principles.