Which of the Following Are True Concerning the Distinction Between

question 84

Multiple Choice

Which of the following are true concerning the distinction between interest rates and returns?

• A) The rate of return on a bond will not necessarily equal the interest rate on that bond.
• B) The return can be expressed as the difference between the current yield and the rate of capital gains.
• C) The rate of return will be greater than the interest rate when the price of the bond falls between time t and time t + 1.
• D) The return can be expressed as the sum of the discount yield and the rate of capital gains.

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Definitions:

Employer's Quarterly Federal Tax Return

A form filed by employers to report income taxes, Social Security tax, or Medicare tax withheld from employee's paychecks, and to pay the employer's portion of Social Security or Medicare tax.

Form 941

A federal tax form used by employers to report quarterly federal income tax withheld from employees' wages and payroll taxes.

Form 940

A tax form filed by employers to report annual Federal Unemployment Taxes (FUTA).

Income Summary

An account used in the closing process to collect the balance of all temporary accounts and transfer the result to permanent equity accounts.