Using a Good as a Medium of Exchange Confers the Benefit

question 81

Multiple Choice

Using a good as a medium of exchange confers the benefit that

• A)the need to quote so many prices in trade is reduced.
• B)the need for a double coincidence of wants is greatly increased.
• C)the need for specialization is reduced.
• D)transactions costs are increased, but they now may be paid in money terms.

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Definitions:

Accounts Payable

A liability in the form of amounts owed by a company to its creditors or suppliers for goods or services received.

Perpetual Inventory System

An inventory system that records changes in inventory levels after every transaction, ensuring continuous, real-time updates.

Accounts Payable

A liability account that records amounts owed by a company to suppliers or creditors for purchases made on credit.

Merchandise Inventory

Represents the goods a company intends to sell to customers that are purchased and stored, evaluated as a current asset on the balance sheet.