Purchasing Common Stock by Writing a Check Best Exemplifies Money

question 107

Multiple Choice

Purchasing common stock by writing a check best exemplifies money serving as a:

• A) store of value.
• B) unit of account.
• C) medium of exchange.
• D) index of satisfaction.

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Definitions:

Notes Payable

Obligations in the form of written notes.

Accounts Payable

A liability account that records amounts the company owes to suppliers or creditors for goods and services purchased on credit.

Note Payable

A financial obligation or loan evidenced by a written promissory note, specifying terms of repayment.

Interest Payment

Interest Payment is the payment made to a lender by a borrower, representing the charge for the privilege of borrowing money.