The Interest Rate Charged Per Period Multiplied by the Number

question 8

Multiple Choice

The interest rate charged per period multiplied by the number of periods per year is called the

• A)effective annual rate.
• B)compound interest rate.
• C)periodic interest rate.
• D)annual percentage rate.
• E)daily interest rate.

---

Definitions:

Cash Receipts

Monies received by a business during a specified period from transactions, including sales and services.

Credit Sales

Transactions where goods or services are sold and payment is deferred to a future date.

Budgeted Sales

Projected sales revenue, often part of a company’s financial planning process to estimate future income from sales.

Cash Disbursements

Outflows of cash for expenses, investments, and other payments made by a business.