Which One Following Will Lower Required Rates of Return

question 6

Multiple Choice

Which one following will lower required rates of return?

• A) higher rates of inflation
• B) higher risk premiums
• C) lower rates of inflation
• D) lower dividend yields

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Definitions:

Equity Accounts

Accounts that represent the owner's interest in the company, including capital stock, retained earnings, and sometimes dividends.

Accounting Process

The systematic approach to recording, classifying, summarizing, and reporting a business's financial transactions.

Journal Entry

A record in accounting that notes the details of a financial transaction, showing which accounts are affected and by what amounts.

Ledger

A book or database in which financial transactions are recorded systematically.