Coin of account
Encyclopedia
A coin of account is a unit of money
that does not exist as an actual coin
(that is, a metal disk) but is used in figuring prices or other amounts of money. For example, the mill
(or sometimes, mil) is a coin of account in the United States
. It is equal to one-tenth of a penny
, and so to one-thousandth of a dollar (= $0.001), whence the name, which means "thousandth." There was never such a coin mint
ed by the U.S. Federal government, though some states minted these coins well into the mid-1900s. Coins of account are used in accounting and for figuring tax
es, usually either property tax
es or sales tax
es.
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
that does not exist as an actual coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
(that is, a metal disk) but is used in figuring prices or other amounts of money. For example, the mill
Mill (currency)
The mill or mille is a now-abstract unit of currency used sometimes in accounting. In the United States, it is a notional unit equivalent to of a United States dollar...
(or sometimes, mil) is a coin of account in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
. It is equal to one-tenth of a penny
Penny
A penny is a coin or a type of currency used in several English-speaking countries. It is often the smallest denomination within a currency system.-Etymology:...
, and so to one-thousandth of a dollar (= $0.001), whence the name, which means "thousandth." There was never such a coin mint
Mint (coin)
A mint is an industrial facility which manufactures coins for currency.The history of mints correlates closely with the history of coins. One difference is that the history of the mint is usually closely tied to the political situation of an era...
ed by the U.S. Federal government, though some states minted these coins well into the mid-1900s. Coins of account are used in accounting and for figuring tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es, usually either property tax
Property tax
A property tax is an ad valorem levy on the value of property that the owner is required to pay. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state or a municipality...
es or sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
es.