To Be Suitable as a Medium of Exchange Money Must

question 65

Multiple Choice

To be suitable as a medium of exchange money must be:

• A) divisible
• B) difficult to forge
• C) portable
• D) all of the above

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Definitions:

Credit Terms

The conditions under which credit is extended by a lender to a borrower, including repayment schedule, interest rate, and the amount of loan.

Net Realizable Value

The estimated selling price of goods, minus the cost of their sale or completion and any necessary disposal expenses.

Allowance for Doubtful Accounts

A concession for estimated bad debts that will arise from accounts receivable that may not be collectible.

Bad Debt Expense

An accounting term referring to the recognition of unrecoverable amounts owed to a company by debtors, treated as a cost on the income statement.