Which term below fits closest to money functioning as a unit of accounting?
A) medium of exchange
B) adverse selection
C) standard of value
D) liquidity

Question

Quizplus · Accepted Answer

A unit of accounting refers to a standard value system that is used to express the worth of different goods and services. Money performs this function by being used as a common measure of value for financial transactions. It is the measure of the value of goods and services that is used in accounting and financial reporting, making C the correct choice. The other options (medium of exchange, adverse selection, and liquidity) do not relate to this definition.

Which Term Below Fits Closest to Money Functioning as a Unit