Which of the Following Terms Does Not Describe an Interest

question 41

Multiple Choice

Which of the following terms does not describe an interest rate used to calculate the interest expense on the income statement?

• A)Nominal rate
• B)Market rate
• C)Effective rate
• D)Yield rate

---

Definitions:

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person under a will or through a court process.

Nonprobate

Refers to assets or property that will pass to survivors by means other than a will, such as through trust or designated beneficiary.

Ambulatory

A term pertaining to the ability of a will to be changed by a testator.

Bequest

The act of giving property or money to someone else after one's death through a will.