If the Government Passed a Law Designating Sea Shells as Money,sea

question 253

Multiple Choice

If the government passed a law designating sea shells as money,sea shells

• A) would not be legal tender
• B) would not function as money because they would be unable to serve as a unit of account
• C) would not function as money because they would be unable to serve as a means of payment
• D) would not function as money because they would be unable to serve as a store of wealth
• E) would function as money as long as they were accepted in exchange for goods and services

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Definitions:

External Users

Refers to individuals or entities outside of a company who use its financial information, such as investors, creditors, and regulatory agencies.

Accounting Standards

The rules and guidelines set by regulatory bodies that govern the preparation and presentation of financial statements.

Generally Accepted Accounting Principles

A collection of commonly-followed accounting rules and standards for financial reporting that is adopted by organizations to ensure consistency and transparency in financial statements.

Traditional Accounting Conventions

Established principles and practices that guide the preparation and presentation of financial statements.