Currency Includes

question 52

Multiple Choice

Currency includes

• A)paper bills and coins.
• B)demand deposits.
• C)credit cards.
• D)Both (a)and (b)are correct.

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Definitions:

Income Tax Payable

Represents the amount of income tax owed to the government that has not yet been paid.

Direct Method

A way to prepare the cash flow statement where actual cash flows from operating activities are reported instead of adjustments from net income.

Operating Expenses

Expenses incurred through the normal operations of a business, including salaries, rent, utilities, and marketing expenses, but excluding cost of goods sold and other non-operating expenses.

Merchandise Sold

Goods that have been sold and delivered to customers, generating revenue for the selling company.