Money Has Three Main Functions

question 14

True/False

Money has three main functions.It is a medium of exchange, a unit of account and is used as a store of value.

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Definitions:

Temporary Accounts

Accounts that are closed at the end of each accounting period, including revenue, expense, and dividend accounts.

Adjusting Entry

A journal entry made at the end of an accounting period to update account balances before preparing financial statements.

Unearned Service Revenue

Represents payments received for services that have not yet been performed or delivered, classified as a liability on the balance sheet.

Advance Payment

Money paid before it is due or for goods or services before they are received.