If a Stock Rose from $10 to $30 Over Ten

question 40

Multiple Choice

If a stock rose from $10 to $30 over ten years, the annual rate of return

• A)was 20 percent
• B)was greater than 20 percent
• C)was less than 20 percent
• D)cannot be determined

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Definitions:

Liability

Any financial debt or obligation that a company owes, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of shareholders in a company.

Balance Sheet

A financial statement that presents a company’s financial position, showing assets, liabilities, and equity at a specific point in time.

Bookkeeper

A person responsible for recording the financial transactions and maintaining the financial records of a business.