Money That We Have Today Can Be Set Aside to Purchase

question 404

Multiple Choice

Money that we have today can be set aside to purchase things in the future. This function of money is known as

• A) medium of exchange.
• B) unit of accounting.
• C) store of value.
• D) standard of deferred payment.

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Definitions:

Journal Entries

The method used in accounting to record each financial transaction of a company, represented by debits and credits in the financial records.

Pension Expense

The cost recognized by an employer in a defined benefit pension plan for the estimated obligations as well as services provided by employees during the current period.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Unrecognized Gains

Increases in asset values that have occurred but are not yet recorded in the financial statements according to accounting principles.