When Goods That Have Intrinsic Value Are Used as Money

question 55

Multiple Choice

When goods that have intrinsic value are used as money, if their value as money falls, the good:

• A) is still useful to people for other reasons.
• B) loses its intrinsic value.
• C) is no longer useful to people for other reasons.
• D) tends to gain in intrinsic value.

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Definitions:

Unearned Revenue

The liability created by receiving revenue in advance.

Capital Account

A financial statement account that represents the ownership interests or equity in a company.

Closed

In accounting, this term refers to accounts that have been concluded for a period, typically at the end of an accounting cycle, by transferring their balances to permanent accounts.

Service Revenue

Income earned by a company from the services it provides to customers, as opposed to selling goods.