Question

Raymond works as a valuation expert. His job is to look at companies, assess how much their assets and liabilities are worth, and place a dollar valuation on the company that other companies must pay in an acquisition. Raymond's company valuations are an example of the unit of account function of money. True or false?

Answer 1

The statement is true

Step-by-step explanation:

Unit of account is one of the important functions of money. An asset or a liability is valued in a particular currency. This helps in comparing different products, goods or services.

Similarly, Raymond is valuing a company's assets and liabilities in dollars so as to assign a value to the company. This will help investors compare the company's worth against other companies. So, company valuation is an example of unit of account function of money.