Why Is the Use of the U

question 42

Multiple Choice

Why is the use of the U.S.dollar as a unit of measure for financial statement data in the United States widely accepted?

• A)The U.S.dollar remains stable over a long period of time.
• B)The U.S.dollar is universally recognized as a reliable financial measure.
• C)The U.S.dollar is the medium of monetary exchange in the United States.
• D)The U.S.dollar is required for financial statement presentation by the FASB and SEC.

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Definitions:

Capital

Represents resources like funds, equipment, and properties used in the production of goods and services, contributing to the wealth of businesses or economies.

Comparative Advantage

is the ability of an individual or country to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of what is foregone in order to pursue a certain action, essentially the benefits you could have received by taking an alternative action.

Consumer Sovereignty

The idea that consumers ultimately dictate what will be produced (or not produced) by choosing what to purchase (and what not to purchase).