Fiat Money

question 84

Multiple Choice

Fiat money

• A)is money that would have no value if it were not usable as money.
• B)is illegal in most advanced, industrial countries.
• C)is usually some type of precious metal.
• D)will generally be accepted in trade for less than its face value.

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Definitions:

Posting Reference

A code or number used in ledger accounts that links journal entries to the specific accounts affected, facilitating traceability and audit processes.

Journal

A journal in accounting refers to a detailed record of all the financial transactions of a business, showing the debits and credits for each transaction.

Trial Balance

An accounting worksheet compiling all ledger balances into debit and credit columns that balance equally.

Debit Balances

The situation where the total debits in an account exceed the total credits, indicating assets or expenses.