Which of the Following Statements About the Rate of Return

question 50

Multiple Choice

Which of the following statements about the rate of return is NOT correct?

• A) The total rate of return may be greater or less than the current yield.
• B) The total rate of return may be greater or less than the rate of capital gain.
• C) The total rate of return may never be negative.
• D) The total rate of return is greater than the coupon, holding everything else constant.

---

Definitions:

Accumulated Depreciation

The aggregate cost of a tangible asset that has been amortized as a depreciation expense from the time the asset started being used.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Correcting Entries

Journal entries made to correct errors found in the accounting records after the posting process.

Service Revenue

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