When the Total Return on an Investment Is Expressed on a Per-Year

question 60

Multiple Choice

When the total return on an investment is expressed on a per-year basis it is called the:

• A)capital gains yield.
• B)dividend yield.
• C)holding period return.
• D)effective annual return.
• E)initial return.

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Definitions:

Sales Journal

A book or digital record used in accounting to record all sales transactions of a company.

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a business, including expenses and asset purchases.

Purchases Journal

A record keeping document used to note all credit purchases of inventory and other items made by a company.

Establishment of Responsibility

An internal control principle focusing on assigning specific responsibilities to particular employees to reduce errors and fraud.