Effective Rate (APY)is

question 94

Multiple Choice

Effective rate (APY) is:

• A)Never related to compound table
• B)Interest for one year divided by annual rate
• C)Interest for one year divided by principal for two years
• D)Interest for one year divided by principal
• E)None of these

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Definitions:

Accounts Classified

The organization of accounts into categories within financial statements, typically as assets, liabilities, equity, revenue, and expenses.

Ledger

A book or collection of financial accounts where all transactions are recorded, usually divided into debits and credits.

Financial Statements

Reports that provide an overview of a company’s financial condition, including the balance sheet, income statement, and cash flow statement.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure that a company's bookkeeping system is mathematically correct.