Which of the Following Is True

question 86

Multiple Choice

Which of the following is true?
I. Checks are considered money because they can be used as a medium of exchange.
II. Checks represent a transfer of money.

• A) neither I nor II
• B) both I and II
• C) II only
• D) I only

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Definitions:

Financed by Creditors

A phrase indicating that a portion of a company's funding or assets has been obtained through borrowing from lenders.

Total Assets

The sum of all owned resources (assets) that have economic value which a company or individual possesses.

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.