The Rate of Interest Actually Paid or Earned,also Called the Annual

question 83

Multiple Choice

The rate of interest actually paid or earned,also called the annual percentage rate (APR) ,is the ________ interest rate.

• A)effective.
• B)nominal.
• C)discounted.
• D)continuous.

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Definitions:

Allowance for Doubtful Accounts

A contra-asset account used to reduce accounts receivable to its net realizable value, anticipating some accounts might not be collected.

Accounts Receivable

Funds that customers owe to a firm for delivered goods or services which have not yet been settled.

Bad Debt Expense

The portion of receivables that a company does not expect to collect, often treated as an expense in the income statement.

National Credit Card

A credit card that is widely accepted across a given nation, often issued by major banks or credit card companies.