Which Is Not One of the Criteria Necessary for a Commodity

question 234

Multiple Choice

Which is not one of the criteria necessary for a commodity to make a suitable medium of exchange?

• A)It should be durable.
• B)It should be of standardized quality.
• C)It should be valuable relative to its weight.
• D)It should have intrinsic value.

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Definitions:

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.

Net Realizable Value

The projected selling price of items subtracted by their sales or disposal expenses.

Accounts Receivable

Outstanding payments from customers to a company for goods or services already delivered but not yet compensated for.

Bank Reconciliation

The process of comparing and matching figures from the accounting records against those presented on a bank statement to ensure they are in agreement and accurate.