Which of the following statements is FALSE about interest rates? A. As interest rates may be quoted
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Question:
Which of the following statements is FALSE about interest rates?
A.
As interest rates may be quoted for different time intervals, it is often necessary to adjust the interest rateto a time period that matches that of cash flows.
B.
The annual percentage rate indicates the amount of simpleinterest earned in one year.
C.
The annual percentage rate indicates the amount of interestincluding the effect of compounding.
D.
The effective annual rate indicates the amount of interest thatwill be earned at the end of one year.
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Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
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