Canada and the U

question 23

Multiple Choice

Canada and the U.S. both experimented with price level accounting in the 1970s. This practice was quickly abandoned largely because

• A) inflation rates declined after the 1970s.
• B) the cost of providing this information was quite high.
• C) it was a clear violation of the Historical Cost Principle.
• D) it provided disclosure figure which were not verifiable.

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Definitions:

Fiscal Year

A 12-month period used for accounting purposes and preparing financial statements, not necessarily coinciding with the calendar year.

Sales

The activity or business of selling products or services.

Partnership

A sanctioned business arrangement in which two or more persons co-manage and equally divide profits.

Total Contributions

The total sum of money given or invested in a particular context or over a period of time.