Morgan Shipping held cash of $1 million throughout 2010 when the general price level decreased by over 30 percent. Morgan Shipping:
A) has more than $1 million of purchasing power at the end of the period.
B) has less than $1 million purchasing power at the end of the period.
C) must recognize the gain due to general price level increases in its income statement.
D) has the same $1 million purchasing power at the end of the period as at the beginning of the period.
Correct Answer:
Verified
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