Which of the Following Is/are TRUE

question 20

Multiple Choice

Which of the following is/are TRUE?
I. The EAR can never exceed the APR.
II. The APR can never exceed the EAR.
III. The APR and EAR can never be equal.

• A) Only I is true.
• B) Only II.is true.
• C) Only II & III are true.
• D) Only I & III are true.

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Definitions:

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Depreciable Asset

An asset that loses value over time due to wear and tear or obsolescence and can have its cost spread out over its useful life for accounting purposes.

Proceeds

The amount of money received from a transaction, sale, or event.