Why Inflation Accounting Is NOT Required in the United States

question 19

Multiple Choice

Why inflation accounting is NOT required in the United States and the United Kingdom since late 1980s?

• A)Accounting regulators in the U.S.and U.K.have not addressed the issue of inflation accounting in their pronouncements.
• B)Inflation is insignificant in the U.S.and the U.K.since late 1980's.
• C)Accounting regulators could not agree on a method for adjusting financial statements for the effect of inflation.
• D)Corporations in the U.S and U.K.voluntarily report inflation-adjusted financial statements, making the regulations unnecessary.

Understand the journal entries associated with the declaration and payment of cash dividends.

Comprehend the date of record and its role in the dividend distribution process.

Calculate the impact of stock dividends on total stockholders' equity.

Understand the accounting treatment for stock dividends.

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