For Anything to Be Considered Money It Must Be

question 27

Multiple Choice

For anything to be considered money it must be

• A)a valuable commodity,such as gold.
• B)a token,such as a green piece of paper.
• C)either a commodity or a token,as long as it is generally accepted as a means of payment.
• D)a mystical token,such as whale teeth.
• E)used in barter transactions.

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Definitions:

Comparative Balance Sheet

A financial statement that presents the balances of assets, liabilities, and stockholders' equity at two or more different points in time to analyze trends or changes.

Indirect Method

A method for preparing the cash flow statement that starts with net income and adjusts for non-cash transactions.

Operating Activities

The day-to-day activities involved in running a business, such as selling products, managing expenses, and paying employees, which are reflected in the cash flow statement.

Statement of Cash Flows

The Statement of Cash Flows is a financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.