s*****r
发帖数: 40 | 1 题目如下
During a period of inflation, the specific price of a parcel of land
increased at a lower rate than the consumer price index. The accounting
method that would measure the land at the highest amount is
a. Historical cost/ nominal dollar
b. Current cost/nominal dollar
C. Current cost/constant dollar
D.Historical cost/constant dollar
The answer is D, Historical cost/constant dollar.
The explanation from Becker is accounting is based on historical cost which
is then adjusted for inflation |
O****v
发帖数: 383 | 2 Becker explanation is pretty self-explanatory, which part do you not
understand? |
s*****r
发帖数: 40 | 3 I think b is the answer.
current cost=historic cost*specific rate
constant dollar=nominal dollar/CPI.
This is why I do not understand Becker.
Could you tell me which part I am wrong.
Thank you very much. |
q****t
发帖数: 125 | 4 Just assume values to the variables and calculate both B and D, then you'll
know D is right. |
