The principal difference between conventional accounting and economic analysis of inflation is that
A)accountants adjust nominal values for inflation.
B)accountants adjust real values for inflation.
C)economists adjust nominal values for inflation.
D)economists adjust real values for inflation.

Question

Quizplus · Accepted Answer

Economists adjust nominal values for inflation to reflect real values, allowing for a more accurate comparison of economic value over time. Accountants typically report financial statements in nominal terms without adjusting for inflation.

The Principal Difference Between Conventional Accounting and Economic Analysis of Inflation