Which of the Following Statements About the Cash Account Are

question 125

Multiple Choice

Which of the following statements about the Cash account are true?

• A)Because most companies earn their fees in cash,the cash account is categorized as revenue
• B)For any given transaction Accounts Receivable and Cash can be used interchangeably because both accounts are measured in terms of cash
• C)The cash account includes the value of any medium of exchange that a bank accepts for deposit
• D)Both A and B are true statements
• E)Both B and C are true statements

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Definitions:

Real Interest Rates

An interest rate that's corrected for inflation to show the genuine cost of borrowing or the authentic return on savings.

Money Supply

The total capital available in an economy at a given moment, which includes cash, coins, and the money held in checking and savings accounts.

Value of Money

The purchasing power of money, indicating how much goods or services one unit of money can buy.

Excess Supply

A market situation where the quantity of a good or service supplied is greater than the quantity demanded at the current price.