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3 years ago

Why is using money as a medium of exchange preferable to bartering?

Business

1 answer:

Y_Kistochka [10]3 years ago

8 0

Answer:

Money as a medium of exchange is more preferable because of its less cumbersome nature.

Explanation:

Money as a medium of exchange is more suitable because of its less cumbersome nature. Money was invented because of the inefficient nature of the barter system.

Money is easily stored compared to a barter system.

Money as a medium of exchange eliminates the barter system's problem of double coincidence of wants. Barter works when you trade things you own for things you want. If for example you want a bicycle and you own a goat, you have to look for someone who wants a goat and owns a bicycle willing to make an exchange, which can be quite difficult.

Money is an acceptable medium of exchange to all parties which makes it more preferable to bartering.

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3 years ago

Rob Grier, a friend of yours, has recently purchased a home for $125,000, paying $25,000 down and the remainder financed by a 10

KonstantinChe [14]

Answer:

Explanation:

Rob is considering their principal payment will be 123.38 everytime.

<u>It will increase through time while interest payment decrease.</u>

Month Beg Cuota Rate Interest Principal payment Ending

1 100,000 998.38 0.00875 875 123.38 99,877

2 99,877 999.38 0.00875 873.92 125.46 99,751

3 99,751 1000.38 0.00875 872.82 127.56 99,624

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<u>The cuota and rate keep at the same level.</u>

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3 years ago

Use the following information for Shafer Company to compute inventory turnover for year 2.

julsineya [31]

Answer:

4.90

Explanation:

Given: Year 2 year 1

net sales: $652,000 $583,800

Cost of goods sold: $389,400 $360,930

Ending inventory $78,600 $80,280

We know, Inventory turnover= $\frac{Cost\ of\ goods\ sold}{Average\ Inventory}$

First, lets find out the Average inventory.

Average inventory= $\frac{78600+80280}{2}$

∴ Average inventory= $\frac{158880}{2} = 79440$

Hence, Average inventory= is 79440.

Now, finding the inventory turnover for year 2.

Inventory turnover= $\frac{389400}{79440}$

∴ Inventory turnover= 4.90

Hence, Inventory turnover for year 2 is 4.90

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3 years ago

Read 2 more answers

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zvonat [6]

Answer:

C. revenues, gains, expenses and losses.

Explanation:

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3 years ago

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yanalaym [24]

Answer:

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3 years ago