Which of the Following Statements Is False

question 57

Multiple Choice

Which of the following statements is false?

• A)MFor a given APR, more frequent compounding results in additional return on the investment.
• B)An amortized loan is repaid in equal payments over a specified time period.
• C)The effective annual rate is determined by multiplying the interest rate charged per period by the number of periods in a year.
• D)Each of the above statements is true.

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Definitions:

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects debt from its customers over a period.

Financial Data

Financial data encompasses information on a company's financial performance, including income statements, balance sheets, cash flow statements, and ratios, used for analysis and decision-making.

Year

A period of approximately 365 days used for calculating time in most of the world, divided into 12 months.

Working Capital

Current assets minus current liabilities, indicating the liquidity of a business and its ability to meet short-term obligations.