Choose the Word or Phrase in [ ] Which Will

question 163

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-Your gross income was $32,000; your net income was $25,000; you saved $1,000.Your savings ratio was [3% | 4%].

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Definitions:

Effective Interest Method

A technique used for calculating the interest income of a debt investment over its expected life, adjusting for the impact of amortizing any discount or premium on the purchase price of the bond.

Journal Entry

A record of the financial transactions of a business, documented in the general ledger accounts.

Issuance

Issuance refers to the process of making securities available for sale by a corporation or government entity, typically in the context of raising capital.

Interest Payment

A payment made to lenders by borrowers, representing the interest accrued on the loan or debt for a specific period.