BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Which of the following could NOT be called income?
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Interest paid on a loan
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Allowance
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Paycheck
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Interest received from a savings account
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Explanation:
Detailed explanation-1: -The interest rate is the amount a lender charges a borrower and is a percentage of the principal-the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).
Detailed explanation-2: -What are the Different Types of Interest? The three types of interest include simple (regular) interest, accrued interest, and compounding interest.
Detailed explanation-3: -Interest income is usually taxable income and is presented in the income statement for the simple reason that it is an income account. Usually, the two categories in the income statement, namely “Income from Operations” and “Other Income” are listed separately.
There is 1 question to complete.