One Advantage of Using Checks to Settle Transactions Is

question 2

Multiple Choice

One advantage of using checks to settle transactions is

• A)they are more difficult to use fraudulently than currency or precious metals are.
• B)there is effectively no cost to using them.
• C)they are as liquid as cash.
• D)there is no information cost involved in accepting them.

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Definitions:

Net Book Value

The calculated value of an asset after subtracting accumulated depreciation or amortization, representing its current value on the balance sheet.

Historical Cost

The original purchase price or cost of an asset or investment, without accounting for inflation or depreciation.

Equipment

Assets that are tangible and used in the operation or process of a business, such as machinery, buildings, or vehicles.

Wages Expense

Wages Expense is the total cost incurred by a business for paying salaries and wages to its employees during a financial period.