Financial Reporting and changing prices Flashcards
1
Q
current cost/constant dollar”
A
includes both specific and general price level changes.
2
Q
period of inflation in which the amount in an asset account remains constant
A
A purchasing power loss, if the item is a monetary asset.
3
Q
nonmonetary items.
A
Property, plant, and equipment the related accumulated depreciation
4
Q
Monetary
A
assets / liabilities fixed
5
Q
Nonmonetary
A
nonmonentary assets and liabilities fluctuate in value with inflation and deflation
6
Q
Demand bank deposits and long-term receivables are
A
monetary assets.
7
Q
Patents and trademarks are
A
non-monetary assets.
