One of the major problems during inflationary times is that revenue is almost always stated in current dollars, whereas plant and equipment or inventory may have been purchased at lower levels.

Question

Quizplus · Accepted Answer

During inflationary times, the cost of plant and equipment or inventory may have increased due to higher prices, while revenue may remain the same. As a result, the value of assets is understated, leading to potential accounting and financial problems.

One of the Major Problems During Inflationary Times Is That