The adjustment resulting from the re-measurere-measurement of an entity operating in a highly inflationary environment would appear
A)in the stockholders' equity section of the balance sheet.
B)as a component of other comprehensive income.
C)as an ordinary income statement item.
D)as an extraordinary item on the income statement.

Question

The adjustment resulting from the re-measurere-measurement of an entity operating in a highly inflationary environment would appear
A)​in the stockholders' equity section of the balance sheet.
B)​as a component of other comprehensive income.
C)​as an ordinary income statement item.
D)​as an extraordinary item on the income statement.

Quizplus · Accepted Answer

In a highly inflationary environment, the re-measurement adjustment is recognized in the income statement as an ordinary item, reflecting the impact of inflation on financial statements.

The Adjustment Resulting from the Re-Measurere-Measurement of an Entity Operating