In a World with No Money, Costs Are Expressed in Terms

question 430

Multiple Choice

In a world with no money, costs are expressed in terms of other goods. If one video game costs two hamburgers, and a hamburger costs three sodas, how many sodas would it take to buy a video game?

• A) 6
• B) 5
• C) 3
• D) 3/2

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Definitions:

Accumulated Depreciation

Accumulated depreciation is the total amount of depreciation expense that has been recorded for an asset, representing how much of its value has been depleted over time.

Cost Expiration

A concept in accounting indicating the point at which a cost becomes an expense, typically when a cost directly contributes to generating revenue.

Intangibles

Assets that lack physical substance, such as patents, trademarks, and goodwill, which can still provide economic benefit to the business.

Straight-Line Depreciation

A practice of dividing up the cost of a tangible asset into regular annual segments during its period of use.