Editing Unit of account (section)

{{Short description|Money function}}
{{About|the economic principle|the Chilean currency, which translates to "unit of account"|Unidad de Fomento}}

{{More citations needed|date=August 2017}}

{{Accounting |expanded=Concepts}}

In [[economics]], '''unit of account''' is one of the functions of [[money]]. A unit of account<ref>{{cite web|date=2017-10-11|title=Functions of Money|url=https://www.boundless.com/business/textbooks/boundless-business-textbook/the-functions-of-money-and-banking-21/money-as-a-tool-123/functions-of-money-568-3194/|url-status=dead|archive-url=https://web.archive.org/web/20151018115939/https://www.boundless.com/business/textbooks/boundless-business-textbook/the-functions-of-money-and-banking-21/money-as-a-tool-123/functions-of-money-568-3194/|archive-date=October 18, 2015|website=[[Boundless (company)|boundless.com]]}}</ref> is a standard numerical monetary unit of measurement of the market value of goods, services, and other transactions. Also known as a "measure" or "standard" of relative worth and deferred payment, a unit of account is a necessary prerequisite for the formulation of commercial agreements that involve debt.

Money acts as a standard measure and a common denomination of trade. It is thus a basis for quoting and bargaining of prices. It is necessary for developing efficient accounting systems.