In Order to Function as a Medium of Exchange, Money

question 112

Multiple Choice

In order to function as a medium of exchange, money must:

• A)be backed by gold.
• B)maintain a constant value over an extended period of time.
• C)be backed by some precious commodity.
• D)be generally accepted in exchange for goods and services.

Learn how to create and interpret Excel charts, including the use of sparkline and clustered column charts.

Understand how to prepare journal entries for transactions involving property, plant, and equipment including sales, disposals, and purchases.

Identify and calculate various types of depreciation and amortization for fixed assets and intangibles.

Understand the accounting treatment and journal entries for asset exchanges and trade-ins with commercial substance.

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Definitions:

Monopoly Power

The ability of a single supplier to control the market price and exclude competitors.

Elasticity of Demand

An assessment of the degree to which the quantity of a good demanded changes in response to its price movement.

Marginal Cost

The additional expenditure involved in making one more unit of a product or service.

Retail Price

The total cost at which a product or service is sold to the end consumer, including any markups by retailers.