A Unit of Account Is

question 122

Multiple Choice

A unit of account is

• A) anything that is generally accepted in exchange for goods and services.
• B) a common measurement in which relative values are expressed.
• C) an item's ability to hold value over time.
• D) the exchange of goods and services for other goods and services.
• E) both a and d

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Definitions:

Invested Assets

Assets that are purchased or acquired for long-term income potential or to benefit the business operations.

Investment Turnover

A measure of the efficiency with which a company uses its assets to generate sales or revenue, calculated as sales divided by invested assets.

Income From Operations

This refers to the earnings generated from a company's normal business operations, excluding extraordinary items and expenses like taxes and interest payments.

Invested Assets

Assets that have been allocated to investments, such as stocks, bonds, or real estate, with the expectation of earning a return.