Inflation accounting helps in avoiding further competition from prospective entrepreneurs. The main goal of this method is that it takes into consideration the changes resulting in the value of money due to the change in the general price levels. It presents the financial statements in terms of constant value ( a unit of measurement) when […]

Also known as the particular price-stage method, present greenback accounting makes use of a selected index of prices to reflect the current value of sure assets and liabilities held by a company. People may adjust the accounts according to the values most suited to them, thereby, making the financial statements more inaccurate. In the past […]