What Is the "Medium of Exchange" Function of Money

question 53

Multiple Choice

What is the "medium of exchange" function of money?

• A) a common measurement of the relative value of different goods and services
• B) the ability of money to hold value over time
• C) the quality of money not to be hoarded because of its commodity value
• D) the function of money to be widely accepted I exchange for goods and services

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Definitions:

Cost of Goods Sold

An accounting term referring to the direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period, calculated by adding new purchases to beginning inventory and subtracting cost of goods sold.

Periodic LIFO

An inventory valuation method where the last items placed in inventory are the first ones counted as sold, calculated at the end of an accounting period.

Cost of Goods Sold

Represents the direct costs attributable to the production of the goods sold by a company.