If You Start with $4,000 Today, Approximately How Much Will

question 80

Multiple Choice

If you start with $4,000 today, approximately how much will you have in 8 years if you can earn 8% each year?

• A) $6,454.
• B) $7,404.
• C) $8,444.
• D) $9,244.

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Definitions:

General Journal

A fundamental accounting ledger that records all businesses transactions in chronological order, prior to being transferred to specific accounts.

Direct Write Off Method

An accounting practice where uncollectable accounts receivable are directly removed from the books when deemed uncollectible.

Direct Write-off Method

An accounting practice where uncollectible accounts receivable are directly written off against income at the time they are deemed unrecoverable.

General Journal

The general journal is an accounting ledger in which all types of transactions are initially recorded before they are posted to specific accounts in the general ledger.