Why Has Inflation Accounting NOT Been Required in the United

question 50

Multiple Choice

Why has inflation accounting NOT been required in the United States and the United Kingdom since the 1980s?

• A)Accounting regulators in the U.S.and U.K.have not addressed the issue of inflation accounting in their pronouncements.
• B)Inflation has not been a significant problem in the U.S.and the U.K.since the 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.

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Definitions:

Iterative Solution

A method of solving a problem by repeatedly using a set of operations until a certain condition is met.

Limiting Condition

A condition or set of conditions that define the boundaries or constraints within which a process or function operates.

Base Case

In recursion, the base case is a condition that stops the recursion by not making a call to itself, thus avoiding an infinite loop.

Recursive Algorithm

An algorithm that solves a problem by dividing it into smaller problems of the same type, calling itself with these smaller problems.