What Is Money and What Important Function Does It Perform

question 37

Essay

What is money and what important function does it perform? Explain how it overcomes the disadvantages associated with barter.What conditions are necessary for people to accept paper currency in exchange for the goods and services, which they sell?

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Definitions:

Freight Out

The cost associated with transporting goods from a company to its customers, considered a selling expense.

Purchase Discounts

Reductions in the cost price of goods or services, offered by suppliers to buyers as an incentive for early payment.

Net Income

The amount of profit left over after all expenses, taxes, and costs have been subtracted from total revenue.