One Advantage That Nontransaction Accounts Have Over Transaction Accounts Is

question 21

Multiple Choice

One advantage that nontransaction accounts have over transaction accounts is that they

• A)pay more interest.
• B)are more liquid.
• C)are more secure.
• D)are less risky.

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Definitions:

Paid-In Capital

The amount of money a company has received from shareholders in exchange for shares of stock.

Capital Surplus

Capital surplus refers to the amount that a company raises from the sale of its shares above their par value, often reflecting additional investment or gains retained in the business.

Legal Capital

The portion of a company's equity that cannot be distributed to shareholders and must be maintained as a financial protection for creditors.

Market Value

The current price at which an asset or service can be bought or sold in an open market.