The Accounting Convention That Means That Accountants Ignore Inflation When

question 3

Multiple Choice

The accounting convention that means that accountants ignore inflation when preparing accounting reports is the:

• A) realisation convention.
• B) dual aspect convention.
• C) reliability convention.
• D) stable monetary unit convention.

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Definitions:

Non-Controlling Interest

An ownership interest in a corporation where the stake does not grant the holder the control over the company's operations and policies.

Buildings And Equipment

Long-term tangible assets owned by a business for use in the production or supply of goods and services, for rental to others, or for administrative purposes.

Entity Method

An accounting approach used in preparing consolidated financial statements where investments are recorded based on the parent company's percentage interest in the net assets of the subsidiary.

Consolidated Statement

A financial statement that presents the assets, liabilities, and operating results of a parent company and its subsidiaries as one entity.