Of the Following, Which Is Not Considered an Important Factor

question 86

Multiple Choice

Of the following, which is not considered an important factor in recent financial innovations?

• A)volatile interest rates
• B)inflation
• C)decreased competition in financial markets
• D)changes in regulation

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Definitions:

Perpetual Inventory System

An accounting method that records inventory purchases and sales in real-time, continuously updating inventory balances.

Purchase Returns

Goods returned to a supplier from a buyer due to issues like defects or dissatisfaction, often leading to a refund or credit.

Periodic System

An inventory accounting system where updates to inventory levels and cost of goods sold are made at the end of an accounting period.

Purchase Discounts

Reductions in the price of goods purchased, usually as a reward for early payment to the supplier.