A Unit of Account

question 329

Multiple Choice

A unit of account

• A) is a type of accounting of how many currency units there are in an economy.
• B) is an accounting of the total units of goods and services produced in an economy.
• C) is an agreed measure for stating the prices of goods and services in an economy.
• D) is a type of value stored within all assets.

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Definitions:

Statement of Cash Flows

A financial report that tracks the cash inflows and outflows from operating, investing, and financing activities over a period.

Statement of Cash Flows

A financial overview explaining how modifications in balance sheet accounts and income levels impact cash and cash equivalents, analyzed through operating, investing, and financing operations.

Accounting Equation

The fundamental equation that represents the relationship between an entity's assets, liabilities, and owner's equity; Assets = Liabilities + Owner's Equity.

Revenue Recognition Principle

An accounting principle that stipulates revenue should be recognized and recorded when it is earned, regardless of when the cash is received.