To Be Considered Money,an Asset Must Be

question 141

Multiple Choice

To be considered money,an asset must be:

• A) backed by gold or other precious metals.
• B) widely accepted as a means of payment.
• C) currency.
• D) issued by the Federal Reserve or a major commercial bank in the United States.

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Definitions:

Petty Cash

A small amount of cash kept on hand for making immediate payments for small expenses.

Cash Over and Short

An account that records discrepancies between physical cash and recorded amounts due to errors or theft.

Journal Entry

A record of a financial transaction that includes the date of the transaction, the affected accounts, the amounts, and a brief description.

Petty Cash

A small amount of cash on hand used for minor, incidental expenses of a business to avoid writing checks.