In Which Order Are the Accounts Listed in the Chart

question 205

Multiple Choice

In which order are the accounts listed in the chart of accounts?

• A) assets, expenses, liabilities, owner's equity, revenues
• B) owner's equity, assets, liabilities, revenues, expenses
• C) assets, liabilities, owner's equity, revenues, expenses
• D) assets, liabilities, revenues, expenses, owner's equity

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Definitions:

Interest Rate

The percent of principal charged by the lender for the use of its money.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in assessing investment opportunities.

Compounded Annually

Describes how interest on an investment or loan is calculated once a year, with each year's interest based on the principal plus any previously earned interest.

Return

The gain or loss on an investment over a specified period, expressed as a percentage increase over the original investment cost.