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Essay

Accouting Theory

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Issue:

Business

 

Written by:

Anonymous

 

Date added:

October 4, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 483

 

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5303 times

 

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Essay content:

While the annual rate of inflation has fluctuated greatly over the last half century, ranging from nearly zero inflation to 23% inflation, the Fed actively tries to maintain a specific rate of inflation, which is usually 2-3% but can vary depending on circumstances (2006). During inflationary times there are several accounting methods to choose from but the best one during this time I would say is general price level adjustment...
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Historical cost accounting is a traditional accounting method however it does not reflect changes during inflation times. General Price level adjustment does just that it adjusts prices accordingly to the time period and the economy. "Adjustment is accomplished by taking the historical cost of an item and multiplying it by a fraction consisting of the general price index for the current period ? divided by the general price index existing at the time of acquisition...
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General issues of this essay:
accounting for income taxes Canadian Income Tax I Income Smoothing Income Tax Law Research Income Tax Research Income Tax Income Taxes Wage Income National Income Income Tax in India income Household Income Income GAPS Income Gap The Income Gap Between Rich and Poor
 

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