Use the Table for the Question(s)below

question 21

Multiple Choice

Use the table for the question(s) below.
Suppose you have the following Loans/Investments
-If your income tax rate is 30%,then the after-tax return you receive on your money market fund is closest to:

• A)3.7%.
• B)5.1%.
• C)3.6%.
• D)4.2%.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, which may not align with the calendar year.

Supplies Expense

Costs associated with consumable items or supplies used in the day-to-day operations of a business.

Adjusting Entry

An adjusting entry is a journal entry made at the end of an accounting period to allocate income and expenditure to the appropriate years.

Physical Count

A method used in inventory management to ensure the actual number of items in stock matches the recorded numbers by counting them manually.