Which of the Following Statements Regarding Inflation and Accounting Is

question 20

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 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.

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Definitions:

Scapegoating

The practice of unfairly blaming an individual or group for problems or negative outcomes, often to divert attention from the real causes.

Actualisation

The realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Enlightenment

A cultural and intellectual movement in Europe, which emphasized reason, scientific inquiry, and individual liberty over traditional social hierarchies and religious dogma.