The Adjustment Resulting from the Remeasurement of an Entity Operating

question 46

Multiple Choice

The adjustment resulting from the remeasurement of an entity operating in a highly inflationary environment would appear

• A)in the stockholders' equity section of the balance sheet.
• B)as a component of other comprehensive income.
• C)as an ordinary income statement item.
• D)as an extraordinary item on the income statement.

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Definitions:

Cyanohydrin

Organic compounds with a nitrile and a hydroxyl functional group attached to the same carbon atom.

Aldehyde

An organic compound characterized by the presence of a carbonyl group bonded to at least one hydrogen atom.

Conversion

The process of changing something from one form to another, often used in chemistry to describe the transformation of substances.

Reaction

A process in which one or more substances are changed into one or more different substances through the reorganization of molecular or ionic structure.