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Advantages and disadvantages of inflation accounting - Cloud Essays

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Advantages and disadvantages of inflation accounting

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During the past 50 years, accounting standards have encouraged companies to supplement historical cost-based financial statements with price-level (inflation)  adjusted statements, but few companies have done so. In your opinion, what are the advantages and disadvantages of inflation accounting? Would you recommend using price-level adjusted statements? Why or why not?

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Study Tips 101: Make sure that you understand the material well, don’t just read through the material and try to memorize everything.

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During the past 50 years, accounting standards have encouraged companies to supplement historical cost-based financial statements with price-level (inflation)  adjusted statements, but few companies have done so. In your opinion, what are the advantages and disadvantages of inflation accounting? Would you recommend using price-level adjusted statements? Why or why not?

1 page

Study Tips 101: Make sure that you understand the material well, don’t just read through the material and try to memorize everything.

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