As a Unit of Account, Money Is Used to

question 59

Multiple Choice

As a unit of account, money is used to

• A) state prices of all goods and services.
• B) pay off future debts.
• C) hold purchasing power over time.
• D) exchange for goods and services.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been subtracted from revenues.

Common Stock

A type of security that represents ownership in a corporation, entitling the owner to vote at shareholders' meetings and receive dividends.

Outstanding

Refers to shares that are currently owned by investors, including public shareholders, company officials, and insiders.

Earnings Per Share

A financial metric that calculates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of a company's profitability.