Money Serves as a ________ When It Is Used as a Way

question 39

Multiple Choice

Money serves as a ________ when it is used as a way of accumulating wealth until it is needed.

• A) unit of accounting
• B) means of payment
• C) store of value
• D) medium of exchange
• E) standard of deferred payment

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Definitions:

General Journal

A primary accounting record where all financial transactions are initially recorded, before being posted to specific accounts in the ledger.

Horizontal Analysis

A financial analysis technique that compares historical financial data over a series of reporting periods, using a base year as a comparison.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) in a balance sheet is represented as a proportion of the total account.

Percentage Analysis

A financial analysis technique that evaluates the proportion or percentage change of individual components in financial statements over time.