When Money Is Used as a Medium of Exchange

question 86

Multiple Choice

When money is used as a medium of exchange

• A) the need for a barter system diminishes.
• B) the cost of transactions increases.
• C) the need for a banking system in the economy decreases.
• D) it reduces the number of transactions in the economy.

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Definitions:

Two-digit Numbering

Two-digit Numbering is a numerical system that uses two digits to identify or categorize items, often used for coding purposes in various contexts.

Accounts Payable

Funds that a company owes to its suppliers for products or services that have been delivered but remain unpaid.

Journalizing

The act of recording business transactions in the journal, forming the initial step of the accounting cycle.

Posting Process

The act of transferring entries from a journal to the corresponding accounts in the ledger.