Why Does Fiat Money Have Value

question 133

Multiple Choice

Why does fiat money have value?

• A)because it is has been decreed by the government
• B)because it is divisible
• C)because it is backed by gold
• D)because it can be exchanged for the commodity backing it

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Definitions:

Adjusted Trial Balance

An adjusted trial balance is a list of all the accounts of a company, showing the balances after adjusting entries have been made for accruals, deferrals, and other adjustments.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts and to prepare the company's books for the next period.

Retained Earnings

The portion of net earnings not paid out as dividends but retained by the company to be reinvested in its core business or to pay debt.

Balance Sheet

A statement that showcases a firm's assets, liabilities, and equity of shareholders at a specific time, useful for determining return rates and examining the organization's financial framework.