The Major Advantage of Using Money Rather Than Barter Is

question 20

Multiple Choice

The major advantage of using money rather than barter is that

• A)in the barter system there is no way to express values of commodities.
• B)money is the only convenient way to store one's wealth.
• C)money has more value than real goods.
• D)money stays where you put it,whereas a cow often has to be fenced in.
• E)the use of money significantly reduces transactions costs.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific time, showing assets, liabilities, and shareholders' equity.

Selling Price

The amount of money for which a product or service is sold to customers.

Accrued Loss

Refers to a loss that has occurred but has not yet been recorded in the accounting records through the date of the financial statements.

Purchase Commitments

Agreements to buy goods or services at a predetermined price, often specifying quantity and delivery dates.