Compound interest is interest paid not only on the initial investment but also on any interest earned after the initial investment
Indicate whether the statement is true or false.
Answer: TRUE
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Which one of the following steps in the accounting cycle is completed only at the end of an accounting period?
a. Business transactions are recorded. b. Adjustments are recorded. c. Transactions are journalized. d. Journal entries are posted to the ledger.
Tennenholtz Company's break-even graph is depicted below. The line labeled "C" is:
a. The sales line. b. The contribution margin line. c. The total cost line. d. The variable cost line.
What are the four types of responsibility centers? What is the focus of each of these responsibility centers?
The original depreciation or amortization schedule for long-lived assets sometimes requires changing. Which of the following is/are not true?
a. Each period a firm must evaluate its estimates of service life and assess if these estimates require changing in light of new information. b. Each period a firm must evaluate its estimates of salvage value and assess if these estimates require changing in light of new information. c. The firm makes no adjustment for the inaccurate estimates but spreads the remaining carrying value less the new estimate of salvage value over the new estimate of the remaining service life of the asset. d. If changing from the old estimates to the new estimates would have a material impact, the firm must change the depreciation or amortization schedule retroactively. e. none of the above