Match Each Item to a Bank Statement Adjustment, a Company

question 98

Multiple Choice

Match each item to a bank statement adjustment, a company books adjustment, or either.
-EFT deposit from a customer

• A)Bank statement adjustment
• B)Company books adjustment
• C)Either

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Definitions:

Compounded Monthly

Refers to the process where interest is added to the principal balance of an investment or loan, and future interest calculations are made on the new total, on a monthly basis.

Annual Interest Rate

The percentage increase in money owed or invested over a year, accounting for the cost of borrowing or the gain on savings.

Compounded

In finance, refers to a method where interest earned is added to the principal, so that, from that moment on, the interest that has been added also earns interest.