When We Say That Money Serves as a Store of Value

question 69

Multiple Choice

When we say that money serves as a store of value, we mean that it is:

• A)a way to keep some of our wealth in a readily spendable form for future use.
• B)a means of payment.
• C)a monetary unit for measuring and comparing the relative values of goods.
• D)declared as legal tender by the government.

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Definitions:

Deferred Creditor

An entity to whom a payment is owed but the payment is delayed or deferred to a future date.

Trade Creditors

Amounts owed by a business to its suppliers for goods and services purchased on credit.

Liquidator's Remuneration

Compensation paid to a liquidator for carrying out the process of winding up a company, including selling off assets, paying creditors, and distributing any remaining funds to shareholders.

Journal Entries

Records of financial transactions in the accounts of a business, providing a chronological order of all debits and credits.