A Journal Is not Useful for

question 197

Multiple Choice

A journal is not useful for

• A)disclosing in one place the complete effect of a transaction.
• B)preparing financial statements.
• C)providing a record of transactions.
• D)locating and preventing errors.

---

Definitions:

Accrued Interest

The amount of interest that has accumulated on a bond or loan but has not yet been paid by the borrower.

Inverse Floaters

Bonds that have coupon rates that move inversely to some reference rate, typically a short-term interest rate.

Coupon Rates

The annual interest rate paid on a bond, expressed as a percentage of the face value.

Interest Rates

The charge, as a percentage of the principal sum, levied by a lender on a borrower for asset usage.