As a Means of Payment,the Functions of Money Are

question 346

Multiple Choice

As a means of payment,the functions of money are

• A) medium of exchange and the ability to buy goods and services.
• B) medium of exchange, unit of account, and means of lending.
• C) pricing, contracts, and store of value.
• D) medium of exchange, unit of account, and store of value.

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Definitions:

JIT

Just-In-Time, a management strategy that aligns raw-material orders from suppliers directly with production schedules to improve efficiency and decrease waste.

Credit Policy Variable

An element that defines the guidelines under which credit is extended to customers, including terms of payment and interest rates.

Credit Period

The duration of time a buyer is allowed to pay for goods or services received, before interest or penalties begin accruing.

Collection Policy

The specific strategies and methods a company uses to manage the collection of its accounts receivable.