pollution
building up in countryside
over population
Answer:
Leno Company will record a debit to Cash in the amount of: D. $9,800
Explanation:
The terms of 2/10, n/30 means 2% discount for the payment within 10 days and the full amount to be paid within 30 days.
Fallon Company pays the invoice within the discount period - early enough to receive a 2% discount. The discount amount is 2% x $10,000 = $200.
On the other hand, Leno Company has to offer a 2% discount to Fallon Company. Cash amount Leno Company receives = $10,000 - 2% x $10,000 = $9,800
Leno Company will record a debit to Cash in the amount of $9,800
Answer:
B
Explanation:
Money as a medium of exchange means money can be used a means of payment. That is, money is used is sorting everyday transactions. Recall that there are three motives of holding money;
1. Transactionary
2. Precautionary
3. Speculative
Transactionary motive means you can use money to sort your everyday transactions.
Precautionary motive - You can save money for rainy days. (i.e. accident, sickness etc)
Speculative motive means you can use money to invest - make investment decisions with money (buy treasury bills, money market fund instruments, currency, etc)
All of the above motives can not be achieved if money does not serve as a means of payment.
Money as a medium of exchange means the legal tender (money) has a government backing.
