If Land Was Acquired Many Years Ago,and Inflation Has Occurred

question 32

True/False

If land was acquired many years ago,and inflation has occurred over time,the value of the land on the financial statements should be increased to reflect some of the change in the land's valuation.However,the land will still be valued at a relatively conservative amount.The company does not follow IFRS.

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Definitions:

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care, typically used to assess inflation.

Inflation Rate

The growth rate in the common price range for goods and services, downgrading the practical purchasing scope.

Money Supply

The aggregate financial assets at a specific time in an economy.

Price Rise

An increase in the cost of goods or services, often reflecting factors like inflation, increased production costs, or higher demand.