Accounting Involves a Great Deal of Precision and Some Degrees

question 21

Multiple Choice

Accounting involves a great deal of precision and some degrees of interpretation; therefore, accounting is ________.

• A)only an art
• B)neither an art nor a science
• C)only a science
• D)both an art and a science

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Definitions:

Fiscal Quarters

Divisions of a financial year into four parts, used for accounting purposes and financial reporting by companies.

Nominal Interest Rate

The interest rate before adjustments for inflation, representing the rate that banks and other lenders quote.

Effective Interest Rate

The actual interest rate when compounding is accounted for, expressed as an annual rate.

Lender

An individual, a financial institution, or an entity that provides funds to another with the expectation that the funds will be repaid, usually with interest.