A(n) ____________ Is a Fiscal Period Consisting of Twelve Consecutive

question 91

Multiple Choice

A(n) ____________ is a fiscal period consisting of twelve consecutive months.

• A)fiscal year
• B)fiscal time
• C)accounting cycle
• D)accrual period

---

Definitions:

Effective Annual Rate

A measure of interest that accounts for compounding over a year, giving a true reflection of the financial cost or return.

Annual Percentage Rate

The annual rate charged for borrowing or earned through an investment, accounting for all costs.

Interest

The cost of using borrowed money, paid by the borrower to the lender, typically expressed as a percentage of the principal sum per year.

Stated Rate

The annual interest rate of a bond or loan without adjusting for compounding or other factors, often differing from the effective rate or annual percentage rate (APR).