A Good Can Serve as Money Only If

question 276

Multiple Choice

A good can serve as money only if

• A)government mandates that the good must be accepted in payment of debts.
• B)it is declared by authorities to be legal tender.
• C)it has intrinsic value or if it is backed by precious metals.
• D)citizens accept the good as a means of payment for transactions and debts.

---

Definitions:

Valuation Allowance

A reserve created by a company to offset a portion of the deferred tax assets when it is more likely than not that some portion or all of the deferred tax assets will not be realized.

Business Combination

A business making an investment in another business by acquiring a controlling share, often greater than 50%, of the outstanding voting stock of another corporation by paying cash or exchanging stock.

Accrued Interest

Interest that has been incurred but not yet paid, reflecting the cost of borrowing or the earnings from lending money over a specific period.

Semiannual Interest

Interest on a loan or investment calculated and paid twice a year, typically at a fixed rate.