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Saving account that paid an annual interest rate

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Reference no: EM13971906

1. Holy Regis invested 10,000 in a saving account that paid an annual interest rate of 6% compounded monthly. In three years, holly will have

A. 11,967

B. 10,623

C. 11,415

D. 11,067

E. None of the above

2. The concept that an item is not large enough to influence the users of a financial statement is

A. Cost effectiveness

B. Materiality

C. Reliability

D. Relevance

E. None of the above

3. Credit sales increase

A. cash

B. Accounts recieveable

C. Owners equity

D. Both b and c

E. None of the above

4. Karen is saving for a car. The car cost 22,000. How much must Karen invest in a savings account that pays 4% annually to have the $22,000 in three years. Round to the nearest dollar

A. $20,147

B. $19,107

C. $19,558

D. $19,328

E. None of the above

5. The quality that ensure that information is reasonable free from error is

A. Reliability

B. Relevant

C. Understandability

D. Consistent

E. None of the above

6. Which of the following is not an expense?

A. Utilities

B. Insurance

C. Dividends

D. Cost of goods sold

E. None of the above

7. Ginger invested $10,000 in a bank account offshore bank. The account pays 3% interest compounded annually. How much will Ginger have in 5 years? Round to the nearest dollar

A. $11,593

B. $11,108

C. $10,123

D. $12,619

E. None of the above

8. Holly invested $6,000 in a savings account that paid an annual interest rate f 6%!l compounded annually. In three years, holly will have

A. $11,967

B. $10,623

C. $11,415

D. $11,067

E. None of the above

Reference no: EM13971906

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