1a.) A Double coincidence of wants is when two people have goods that they are both
willing to exchange with each other. For example John has flour and wants coffee and
Bill has coffee and wants flour so they trade with each other. T
Functions of Money
Medium of exchange:Money can be used for buying and selling goods and services.
Unit of account:Prices are quoted in dollars and cents.
Store of value:Money allows us to transfer purchasing power from present to future. It
is the most
Accounting: language of business
Financial Accounting: accounting information provided to external users (not part of the
Managerial Accounting: accounting information provided to internal users (employed by
Eliminate terms off the diagonal and make the coefficients of the variables on the