The Interest Rate Charged Per Period Multiplied by the Number

question 3

Multiple Choice

The interest rate charged per period multiplied by the number of periods per year is called the _____ rate.

• A) effective annual
• B) annual percentage
• C) periodic interest
• D) compound interest

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Definitions:

Trial Balance

A bookkeeping worksheet listing the balances of all ledgers in two columns, debits, and credits, to ensure entries are recorded correctly.

Journal Amounts

Journal amounts represent the values recorded in a financial journal, depicting transactions in monetary terms for accounting purposes.

Ledger Accounts

Records that summarize all transactions related to a specific account within an accounting system.

Posting

The process of recording financial transactions in the ledger from the journal in accounting.