Which of the Following Best Illustrates the Concept of a Store

question 67

Multiple Choice

Which of the following best illustrates the concept of a store of value?

• A)You are a precious-metals dealer,and you are always aware of how many ounces of platinum trade for an ounce of gold.
• B)You sell items on eBay,and your prices are stated in terms of dollars.
• C)You keep 6 ounces of gold in your safe-deposit box at the bank for emergencies.
• D)None of the above is correct.

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Definitions:

Permanent

A term used in accounting to describe accounts that are not closed at the end of the accounting period, such as assets, liabilities, and equity accounts.

Temporary

Pertaining to or lasting for a limited time; in accounting, referring to accounts that are closed at the end of each accounting period, such as revenue and expense accounts.

Permanent

Refers to accounts or records in accounting that are not closed at the end of the accounting period and are carried over into the next period.

Temporary

Pertains to something not permanent or lasting only for a limited period of time.