Which of the Following Is NOT an Important Criterion for Whether

question 31

Multiple Choice

Which of the following is NOT an important criterion for whether a good will be usable as a medium of exchange?

• A)The good must be of standardized quality.
• B)The good must be valuable relative to its weight.
• C)The good must have value even if it were not being used as money.
• D)The good must be durable so that value is not lost through product spoilage.

---

Definitions:

Accrued

Refers to amounts that are recognized in the financial statements before the cash transactions occur, representing liabilities for goods and services received but not yet paid.

Routine Entry

Repeated and standard accounting entries made for recurring transactions within a business's financial records.

Expense

An outflow of cash or other valuable assets from a person or company to another entity in exchange for goods or services.

Deferral

Recognition of revenue or expenses in a period different from when the transaction actually occurred, usually related to prepaid expenses or unearned revenue.