What Are the Three Functions That a Commodity Must Fulfill

question 56

Essay

What are the three functions that a commodity must fulfill to be useful as money?

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Definitions:

Cash Receipts

Money received by a business, often recorded in the period it is received.

Cash Sales

Revenue received from transactions where payment is made immediately in cash.

Collections

The process of pursuing and receiving payments on outstanding accounts receivable from customers.

Payments

The act of transferring money or money's worth from one party to another as a settlement for a transaction or an obligation.