Money Management in Society

This text discusses the use and sources of money in a society. It shows how a profitable society does not necessarily have more cash, and how money can be used in other ways to enable the society to earn still more surplus.

Here are some questions and answers about the text:

• What are the sources of money in a society?
• What are the uses of money in a society?
• Why does a profitable society not necessarily have more cash?

Here are the answers to the questions:

• The sources of money in a society include cash, accounts receivable, plant and equipment, undistributed surplus, and loans.
• The uses of money in a society include accounts receivable, plant and equipment, accounts payable, loans, and undistributed surplus.
• A profitable society does not necessarily have more cash because the money may be used to invest in new plant and equipment, to pay off debt, or to retain in the society as undistributed surplus.