Without an Accepted Medium of Exchange

question 334

Multiple Choice

Without an accepted medium of exchange

• A) there would be no trade.
• B) people would have to rely on gold or silver in order to exchange goods and services.
• C) goods and services would be exchanged by barter.
• D) prices are very difficult to determine.

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Definitions:

Net Income

The profit remaining after all expenses, taxes, and costs have been subtracted from total revenue.

Working Capital Ratio

A financial metric used to determine a company's ability to pay off its current liabilities with its current assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a company.