<u>Answer:</u>
The correct option is Unit of account
<u>Explanation:</u>
One of the functions of money is Unit of accounts in economics. The worth of an object is measured in a distinct currency. One of the downfalls of unit of account is that it is regarded as the steady unit of account but inflation factor devastate the said assumption that money is steady. It is regarded as the basic property of the money.
Thus, the correct option will be Unit Of Account.
Answer and Explanation:
The answer is attached below
Current asset under Balance Sheet. :)
A property's return on equity ratio is 28% and generates a cash flow of $70,000. The equity the owner have (to the nearest hundred) is $250,000.
In finance, the term equity is used to refer to the ownership of assets which have debts or other liabilities linked to them. It is measured for accounting purposes. This involves subtracting liabilities from the value of the assets.
Assets is a term for the items your company owns which provide future economic benefit. Liabilities are the things that an owner owes to others
In short, assets put cash in your pocket, and liabilities put cash out.
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Option a - $ 1000000 in one instalment
Option b - $100000 to be paid annually during 15 years, starting with one instalment at the year 2000
Interest rate = 10%
Which option would a savvy financial investor prefer
PV of Option a = 1000000 * 1 = $ 1000000
PV of option b = 100000 * PVIFA(10%,15)
PV of option b = 100000 * 7.6060795 = $ 760608
The PV of option a is higher, hence prefer the option a
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