Cash, credit, or payment in arrears etc Means of payments—legal tender e.g coins, bank notes. - SS3 Commerce Lesson Note

Cash, credit, and payment in arrears are different means of payment that people and businesses use to settle financial obligations. 

• Cash: Cash refers to physical currency in the form of coins and banknotes that are accepted as legal tender. It is a widely recognized and accepted form of payment. When you make a cash payment, you are using physical money to settle a debt or purchase goods or services. Cash payments are immediate and do not involve any additional credit or debt.
• Credit: Credit is a means of payment that allows individuals or businesses to obtain goods or services with the promise of paying back the amount owed at a later date. It involves borrowing money from a lender, such as a bank or credit card company, to make a purchase. The lender extends credit to the borrower, who is expected to repay the borrowed amount along with any applicable interest or fees within a specified timeframe.
• Payment in Arrears: Payment in arrears refers to a situation where the payment for goods or services is made after they have been received or consumed. Instead of making an upfront payment, the payment is deferred until a later date. For example, if you have a monthly subscription for a service, you may receive the service first and then make the payment at the end of the month or billing cycle.
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Means of Payments - Legal Tender:

• Legal tender refers to the official form of payment recognized by a government as acceptable for settling financial obligations. In most countries, legal tender includes coins and banknotes issued by the government or central bank. These physical forms of currency are typically denominated in the country's official currency and are widely accepted for transactions within the country.
• Coins: Coins are metallic discs or tokens of various denominations issued by the government. They are made from different materials such as copper, nickel, and silver, and they have specific values assigned to them. Coins are used for smaller value transactions and are commonly found in everyday circulation.
• Bank Notes: Banknotes, also known as paper money or bills, are printed paper currency issued by the government or central bank. They come in different denominations and are made of durable materials to withstand wear and tear. Banknotes are used for higher value transactions and are widely accepted by businesses and individuals as a form of payment.
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