In Order for Something to Function Well as a Medium

question 22

Multiple Choice

In order for something to function well as a medium of exchange, it must be

• A) issued by a central government.
• B) readily and widely accepted in trade.
• C) backed by a valuable commodity.
• D) All of the above are correct.

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Definitions:

Income Statement Debit

This is not a typical term in accounting as income statements are structured around revenues and expenses rather than debits and credits.

Credit Columns

The sections on the right side of accounting ledgers where credit transactions are recorded.

Chart Of Accounts

A systematic listing of all account titles and numbers being used by an organization to track its financial transactions and prepare financial statements.

Ledger

A comprehensive book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type, with debit and credit entries in separate columns and a beginning and ending balance for each account.