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Which of the Following Reflects the Treatment of Inflation Accounting

Question 39

Multiple Choice

Which of the following reflects the treatment of inflation accounting in the European Union?


A) The 4th Directive does not allow an alternative to historical cost due to the influence of the Germans.
B) Firms are allowed to provide supplemental current cost information.
C) Firms are not allowed to put their financial statements in terms of current costs, even if they provide supplemental historical cost information.
D) none of the above.

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