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Your Bookkeeper Is Off for the Day and You Are

question 46

Multiple Choice

Your bookkeeper is off for the day and you are trying to figure out the last entry she recorded in the journal. Unfortunately, she only recorded part of the transaction as a decrease of $4,400 in the Accounts Payable account. It is possible that this partial entry could correspond to:


Definitions:

Percent Increase

The percentage by which a quantity grows relative to its previous value.

Effective Annualized

A term relating to the computation of annual rates of interest or financial returns that takes compounding into account.

Capital Gain Yield

The price appreciation component of the total return on an investment, calculated as the change in the price of the investment over a period of time.

Total Return

Represents the full return on an investment over a given time period, including capital gains, dividends, and interest.

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