When Something Is Generally Accepted as a Means of Payment

question 146

Multiple Choice

When something is generally accepted as a means of payment, such as grain in many traditional societies, we say that this represents

• A)money as a medium of exchange.
• B)money as a store of value.
• C)money as a unit of wealth.
• D)an inflationary danger.
• E)a government opportunity for social control.

---

Definitions:

Capital Balance

A financial balance within a company's or individual's equity account, representing the amount of funds contributed by owners or partners.

Bonus Method

An accounting method for recording partner investments and distributions where the new partner's capital is adjusted to reflect any bonus given to or received from the existing partners, affecting the capital accounts but not the reported income of the partnership.