Which of the Following Is a Characteristic of Paper Money

question 192

Multiple Choice

Which of the following is a characteristic of paper money?

• A)It has a high intrinsic value.
• B)It is used in a barter economy.
• C)It is valuable because it is generally accepted in trade.
• D)It is valuable only because of the legal tender requirement.

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Definitions:

Net Pay

Gross earnings, less deductions. Net pay, or take-home pay, is what the worker actually takes home.

Wages and Salaries Payable

Liabilities for wages and salaries that have been earned by employees but have not yet been paid.

Federal Income Taxes Payable

The amount of income tax that a company or individual owes to the federal government and has not yet paid.

Payroll Taxes Payable

Liabilities owed to tax authorities for employee taxes withheld and employer payroll taxes; to be paid within a specified period.