The Concept of Double Coincidence of Wants Refers to the Fact

question 65

Multiple Choice

The concept of double coincidence of wants refers to the fact that:

• A)for a financial asset to be exchanged, it needs to be priced correctly.
• B)for barter to take place, both parties have to want what the other party has.
• C)people can never exactly agree on an equilibrium price.
• D)different people value goods differently.
• E)for barter to take place, both parties must have equal quantities of the same good.

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Definitions:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up.

Plant Expansion

The process of increasing the capacity of an existing factory or plant, often involving investments in equipment, technology, or additional space.

Retained Earnings

Accumulated net income left over for a company after it has paid out dividends to its shareholders.

Prior Period Adjustment

Adjustments made to the financial statements of a prior period to correct an error or to account for a retroactive application of new accounting policies.