Which of the Following Statements Is False

question 35

Multiple Choice

Which of the following statements is false ?

• A) Round stones with holes in the center can serve as money.
• B) Money eases the process of exchanging goods and services in a modern economy.
• C) Money serves as a measure of value only when it is backed by gold or silver.
• D) Money is used as a measure of the relative value of goods and services in an economy.

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Definitions:

Retail Inventory Method

An accounting method used to estimate inventory value by calculating the cost to retail price ratio.

Cost To Retail Ratio

A method used in retail to calculate inventory value by comparing the cost of goods to their retail price.

Ending Inventory

Ending inventory is the value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases minus the cost of goods sold.

Gross Profit Method

An accounting technique used to estimate inventory levels and cost of goods sold by utilizing the gross profit margin.