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Which One of the Following Would Not Be Included in a Closing

question 49

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Which one of the following would not be included in a closing entry at the end of the accounting year?


Definitions:

Nominal Rate

The nominal rate is the stated interest rate of a loan or investment, not accounting for compounding or inflation.

Compounded

The process where interest earned on a principal amount is reinvested, resulting in interest earning interest over time.

Demand Loan

A loan wherein the lender is entitled to demand full repayment at any time without notice.

Compounded Quarterly

Interest calculated on an investment or debt four times a year.

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