Checks Are Not Money Because They

question 314

Multiple Choice

Checks are not money because they

• A)are just instruments to transfer money between banks.
• B)are not guaranteed by banks.
• C)can bounce when there are not enough funds to cash them.
• D)are not issued by the government.
• E)are not always accepted when trying to purchase goods or services.

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Definitions:

Expected Cost

An estimate of the cost for a product, project, or operation that is anticipated under normal conditions.

Sell

The act of giving or handing over something in exchange for money.

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue contributes to covering fixed costs and generating profit.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors are valid.