Which method of dealing with inflation in financial reporting reflects current replacement cost of specific assets?
A)current replacement cost method
B)general purchasing power method
C)temporal method
D)current rate method

Question

Quizplus · Accepted Answer

The current replacement cost method considers the current cost of replacing specific assets, which reflects the impact of inflation on those particular assets. The other methods (general purchasing power, temporal, and current rate) do not specifically focus on replacement costs and may not accurately reflect inflation's impact on specific assets.

Which Method of Dealing with Inflation in Financial Reporting Reflects