We Call the Process of Earning Interest on Both the Original

question 64

Multiple Choice

We call the process of earning interest on both the original deposit and on the earlier interest payments

• A) simple interest.
• B) compounding.
• C) future value.
• D) discounting.

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Definitions:

Cost of Merchandise

The total expense incurred by a business to buy or produce the goods it has sold during a specific period.

Credit Memo

A Credit Memo is a document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller, typically due to a return or an overpayment.

Perpetual Inventory

A system for managing inventory that instantly logs inventory sales or purchases via computerized point-of-sale systems and software for enterprise asset management.

Freight

The charge paid for transport of goods, typically either by land, sea, or air.