Which of the Following Is an Example of the Use

question 102

Multiple Choice

Which of the following is an example of the use of money as a medium of exchange?

• A)Dave keeps $250 in his drawer for a "rainy day."
• B)Mike gets a friend to give him a beer today in return for promising to give the friend two beer when Mike gets paid at the end of the month.
• C)Judy lends her car to a friend who signs a promissory note that she will pay Judy $10 a day for the use of the car after she returns the car to Judy.
• D)Barry pays $275 with his bank debit card for tickets for an NHL play-off game.
• E)ABC Investments Inc.enters in its account books that it owes Nallai $20 for his last month's investment income.

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Definitions:

Voting Power

The rights of shareholders to vote on corporate matters, which can influence company management, strategic direction, and corporate policies.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.

Inventories

The complete list of items such as property, goods in stock, or the contents of a building, often held for sale in the regular course of a business.

Profit After Tax

The net income remaining after all taxes have been deducted from total revenue.