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:

Expected Value

The expected value is the long-run average value of repetitions of an experiment it represents, often used in probability and statistics.

Poisson Distribution

A probability distribution that represents the likelihood of observing a certain number of events within a specified time or space interval.

Poisson Distribution

A probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, assuming these events occur with a known constant rate and independently of the time since the last event.

Discrete Random Variable

A variable that takes on a countable number of distinct values, often used in probability theory and statistics.