Which of the Following Is a Function That Money Serves

question 196

Multiple Choice

Which of the following is a function that money serves?

• A)medium of exchange
• B)unit of account
• C)store of value
• D)All of the above are correct.

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Definitions:

Indirect Method

A cash flow statement approach that starts with net income and adjusts for changes in balance sheet accounts to calculate the cash from operating activities.

Operating Activities

The primary revenue-producing activities of a business, involving transactions and events that affect net income.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Investing Activities

Financial activities related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.