Which of the Following Is True Regarding Value and Exchange

question 220

Multiple Choice

Which of the following is true regarding value and exchange?

• A) Middlemen fail to create value since they do not expand the supply of physical goods.
• B) A good or service has a given value regardless of who uses it or how it is used.
• C) If it were not for middlemen, transaction costs would be zero.
• D) Voluntary exchange creates value by channeling goods into the hands of people who value them most.

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Definitions:

Accumulated Depreciation

The total depreciation for a fixed asset that has been charged to expense since that asset was acquired and made available for use.

Accrued Revenue

Revenue earned but not yet received in cash or recorded at the statement date, usually recognized in accrual basis accounting.

Snow Removal Services

Companies or departments dedicated to clearing snow and ice from outdoor surfaces, such as roads and walkways, to ensure safety and accessibility.

Adjusting Entries

Entries recorded at the conclusion of an accounting period to adjust the account balances prior to the creation of financial statements.