When Economists Refer to the Role of Money as a Unit

question 68

Multiple Choice

When economists refer to the role of money as a unit of account, they mean that

• A)most accounting systems reflect that goods are purchased with currency.
• B)most accounting systems reflect that goods are purchased with checks.
• C)money gives traders a way of measuring value in the economy.
• D)money makes it possible for specialization to take place.

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Definitions:

Cash Flow

The whole amount of funds that are being transferred into and out of a company, affecting its immediate financial viability.

Assets

Resources owned by a company from which future economic benefits are expected.

Earnings Per Share

A company's profit divided by its number of outstanding shares, indicating the profitability of the company on a per-share basis.