What Type of Account Would You Expect to Provide the Poorest

question 56

Multiple Choice

What type of account would you expect to provide the poorest yield?

• A)Certificate of deposit earning 3% compounded semiannually
• B)Savings account earning 3% compounded annually
• C)Money market account earning 3% compounded monthly
• D)Money market fund earning 3% compounded monthly
• E)Savings account earning 3% compounded semiannually

---

Definitions:

Compensation

Payment or benefits provided to employees in exchange for their work or services.

Accrue a Liability

The process of recognizing liabilities that have been incurred but not yet paid or recorded in the financial statements.

Current Maturities

The portion of a company’s long-term debt that is due to be paid within the next fiscal year, often classified under current liabilities.

Long-term Debt

Financial obligations owed by a company that are due more than one year in the future, typically including bonds, long-term loans, and lease liabilities.