Moneyʹs Function as a Medium of Exchange Means That

question 566

Multiple Choice

Moneyʹs function as a medium of exchange means that

• A) money can be used to store wealth.
• B) money requires a double coincidence of wants.
• C) money serves as an acceptable means of payment.
• D) money is a common denominator for expressing the prices of goods and services.

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Definitions:

Service Cost

The portion of the pension expense that is recognized for the increase in pension benefits related to employee services of the current period.

Unrecognized Prior Service Cost

Costs not immediately recognized on the income statement related to retroactive benefits granted to employees in a pension plan amendment.

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation each year over the useful life of the asset.

Defined Benefit Pension Plan

A type of pension plan where an employer commits to pay a specified pension amount to the retiree, based on factors like salary history and duration of employment.