Which of the following measurement models of accounting equate with perspectives of maintaining the purchasing power of capital intact?

Question

Quizplus · Accepted Answer

General price-level adjustment accounting aims to maintain the purchasing power of capital by adjusting the historical cost of assets and liabilities to reflect changes in the general price level. This ensures that the financial information reported remains relevant and meaningful in inflationary environments. Current cost accounting and continuously contemporary accounting focus on reflecting the current value of assets, rather than maintaining the purchasing power of capital intact. Therefore, the correct answer is A.

Which of the Following Measurement Models of Accounting Equate with Perspectives