When Money Is Held as an Asset, It Is Serving

question 143

Multiple Choice

When money is held as an asset, it is serving as a:

• A)standard of value.
• B)unit of account.
• C)medium of exchange.
• D)store of wealth.

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Definitions:

Contra-Liability Account

An account on a company's balance sheet that reduces the amount of a liability, serving as a negative balance to that liability.

Straight-Line Amortization

A technique for distributing the expense of an intangible asset uniformly across its lifespan.

Interest Paid

The total amount of interest payments made by a borrower to lenders within a specific time frame.

Carrying Value

The book value of assets and liabilities, calculated as the original cost minus accumulated depreciation or amortization and impairment.