_____ Refers to a Process by Which You Earn Interest

question 117

Multiple Choice

_____ refers to a process by which you earn interest not only on the money you directly invest but also on the interest you've earned in previous years.

• A) Compounding
• B) Diversifying
• C) Recurring
• D) Divesting

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Definitions:

Expense Accounts

These accounts record the consumption of assets or services that occur during the operation of a business, leading to a decrease in owner's equity.

Revenue Accounts

Accounts in the general ledger that track the income generated by a company from its normal business operations.

Gain On Sale

The profit realized when a capital asset is sold for a higher price than its purchase price.

Property And Equipment

Tangible assets owned by a business for use in the production or supply of goods and services or for rental to others.