Which of the following is $\underline{not}$ a possible outcome of postulate C-4, stability of the monetary unit?
A)If purchasing power of the monetary unit is not stable, some form of inflation accounting is appropriate.
B)If purchasing power of the monetary unit is not stable, historical cost is still justified.
C)If purchasing power of the monetary unit is stable, a system of current values is justified.
D)If purchasing power of the monetary unit is stable, retention of historical cost is justified.

Question

Quizplus · Accepted Answer

Postulate C-4 states that the monetary unit must be stable in purchasing power. A possible outcome of the postulate is that if the purchasing power of the monetary unit is not stable, some form of inflation accounting (such as adjusting historical costs for inflation) is appropriate. Another possible outcome is that if the purchasing power of the monetary unit is stable, a system of current values (such as marking assets to their current market value) is justified. It is also possible that if the purchasing power of the monetary unit is stable, retention of historical cost is justified. However, the statement that historical cost is still justified if the purchasing power of the monetary unit is not stable contradicts postulate C-4. Therefore, option B is not a possible outcome.

Which of the Following Is not‾\underline{not}not​ A Possible Outcome of Postulate C-4, Stability of the Monetary

Which of the Following Is $\underline{not}$ A Possible Outcome of Postulate C-4, Stability of the Monetary