For a Commodity to Function Effectively as Money It Must

question 77

Multiple Choice

For a commodity to function effectively as money it must be

• A)easily standardized,making it easy to ascertain its value.
• B)difficult to make change.
• C)deteriorate quickly so that its supply does not become too large.
• D)hard to carry around.

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Definitions:

Sales Allowance

A reduction in the sale price granted by the seller to the buyer, often due to minor defects or because the buyer has returned part of the order.

Sales Returns

Transactions where customers return previously purchased merchandise for a refund, replacement, or credit toward future purchases.

Credit Sales

Sales made on credit, where the payment is received after the delivery of the goods or services.

Contra-Revenue

An account that offsets revenue accounts on the income statement, typically related to returns, allowances, and discounts.