For an Asset to Be a "Means of Payment," the Asset

question 158

Multiple Choice

For an asset to be a "means of payment," the asset

• A)is valuable and backed by gold.
• B)is valuable and backed by the government.
• C)can be used to settle a debt.
• D)requires a double coincidence of wants.
• E)must be used when bartering.

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Definitions:

Balance Sheet

A financial statement that presents a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.

Temporary Accounts

Accounts that are used to collect balances over a single accounting period, which are then reset by transferring the balance to a permanent account, including revenue, expense, and dividends accounts.

Nominal Accounts

Accounts that are closed at the end of each accounting period, including all income, expense, and withdrawal accounts.

Closing Process

The set of procedures undertaken at the end of an accounting period to prepare accounts for the next period, including closing temporary accounts to the permanent summary account.