For Accounting Purposes, Postdated Checks (Checks Payable in the Future)

question 38

Multiple Choice

For accounting purposes, postdated checks (checks payable in the future) are considered to be

• A)money orders.
• B)cash.
• C)petty cash.
• D)accounts receivable.

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Definitions:

Circular-flow Diagram

A model that illustrates how goods, services, and money move through an economy, depicting the interactions between households and businesses.

Participants

Individuals or entities that take part in a process or activity.

Factors Of Production

The resources used in the production of goods and services, which include land, labor, capital, and entrepreneurship.

Inputs

The resources such as labor, materials, and capital that are used in the production process to produce goods and services.