Which of the Following Is Equity

question 11

Multiple Choice

Which of the following is equity?
1) investments
2) additional paid‑in capital
3) retained earnings

• A)​1 and 2
• B)​1 and 3
• C)​2 and 3
• D)​1, 2, and 3

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Definitions:

Nominal Annual Interest

Nominal annual interest is the stated interest rate associated with a loan or investment, not accounting for compounding or inflation effects within a specific year.

Monthly Car Payments

Regular payments made by a borrower to a lender for the financing of a vehicle purchase, typically structured over a set period.

Down Payment

An initial payment made when something is bought on credit, typically a percentage of the purchase price.

Compounded Annually

The process of calculating interest on both the initial principle and the accumulated interest of previous periods on a yearly basis.