An Advantage of the Medium of Exchange Function of Money

question 20

Multiple Choice

An advantage of the medium of exchange function of money is that it

• A)facilitates trade.
• B)provides a value for goods and service.
• C)allows for comparison of prices.
• D)allows consumers to time their purchases.

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Definitions:

Identifiable Net Assets Method

A technique used in business combinations where only the assets and liabilities that can be identified and valued are included in the calculations of the purchase price allocation.

Amortization

The gradual reduction of a debt over a period of time through regular payments covering interest and principal.

Dividends

Payments made by a corporation to its shareholder members from the company's earnings, distributed among shareholders.

Acquisition Date

The exact date on which the acquirer effectively gains control over the acquiree in a business combination.