Which of the following is not a possible limitation with CPPA accounting?

Question

Quizplus · Accepted Answer

The information provided by CPPA is not necessarily simple and easily understood by users. This is because the process of adjusting for changes in the general price level requires complex calculations and assumptions. A possible limitation of CPPA is that users may think that the price-level adjusted amounts reflect the specific value of specific assets, which may not necessarily be the case. Additionally, research has shown that the information provided by CPPA may not always be decision-relevant. Another possible limitation is that the prices of the goods and services included in the general price index may not be reflective of the price movements specific to that particular industry.

Which of the Following Is Not a Possible Limitation with CPPA