Which of the Following Statements Regarding Inflation and Accounting Is

question 48

Multiple Choice

Which of the following statements regarding inflation and accounting is false?

• A) The SEC requires U.S.companies to present supplemental financial information adjusted for the effects of inflation.
• B) Instability of the measuring unit that is the currency occurs in countries with rampant inflation.
• C) In some in Latin American and South American countries, companies have been required to
• Adjust their financial statements to take into account the effects of inflation.
• D) The FASB developed rules for companies in the United States to use to adjust for inflation.

---

Definitions:

Emotional Satisfaction

The state of being content or fulfilled in one's emotional needs and desires.

Social Loafing

The tendency of individuals to expend less effort when working in a group compared to when working alone.

Group Member

An individual who is a part of a collective or team, contributing to the group's objectives and activities.

Group Cohesion

The strength of the relationships linking members of a group to one another and to the group itself.