When People in a Barter Economy Began to Accept the Good

question 75

Multiple Choice

When people in a barter economy began to accept the good that had greater acceptability than all other goods,they weren't trying to create the institution of money.They were simply trying to __________.

• A) get along with their neighbors.
• B) become rich.
• C) make trading easier for themselves.
• D) pay lower prices.
• E) none of the above

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Definitions:

Uncollectible Accounts Expense

An expense reported on the income statement, pertaining to the debt owed to a company that is unlikely to be recovered.

Percentage Of Credit Sales

A method used to estimate bad debts expense, based on the percentage of sales made on credit that are expected to be uncollectible.

Allowance Method

An accounting technique used to estimate and account for bad debts, acknowledging that a certain percentage of sales or receivables may not be collected.

Direct-write Off Method

An accounting technique where uncollectible accounts receivable are written off directly against income at the time they are deemed nonrecoverable.