While Studying the Chapter on Investments in Personal Finance,Becky Hargrith

question 165

Multiple Choice

While studying the chapter on investments in Personal Finance,Becky Hargrith found out that the ________ is equal to the real rate of return plus the rate of inflation.

• A)adjusted rate
• B)long-term rate of return
• C)nominal interest rate
• D)real interest rate

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Definitions:

Service Revenue

Income earned by a company for the services it provides to its customers.

Accounts Receivable

Money owed to a business by its clients for goods or services that have been delivered but not yet paid for.

Closing Entries

These are journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Permanent Accounts

These are balance sheet accounts whose balances are carried over to the next accounting period, such as assets, liabilities, and equity accounts.