If an Annual Interest Rate Is 9%,the Monthly Interest Rate

question 15

Multiple Choice

If an annual interest rate is 9%,the monthly interest rate is expressed as ____.

• A) .09/12
• B) 12/9%
• C) 12*9%
• D) .09*12

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Definitions:

Credit

An accounting entry that either increases equity, liability, or revenue accounts, or decreases an asset or expense account.

Debit

An entry recorded on the left side of a double-entry accounting system that increases assets or expenses and decreases liabilities, equity, and revenue.

Inventory Purchases

This term refers to the buying of goods and materials that a business intends to sell in the future as part of its operations.

Accounts Payable Aging Report

A financial report that categorizes a company's accounts payable according to the duration that an invoice has been outstanding, helping businesses manage their debts effectively.