Unit of Account

This article talks about Unit of Account, which is the function of money that enables the user to keep accounts, value transactions, etc. It refers to the words that are used to describe the specific assets and liabilities that are reported in financial statements rather than the units used to measure them. It is a basic function of money, providing a unit of measurement for defining, recording, and comparing value. Unit of account In economics Unit of account suffers from the pitfall of not being stable in real value over time because money is generally not perfectly stable in real value during inflation and deflation.