Which of the following basic accounting assumptions is threatened by the existence of severe inflation in the economy?  Monetary unit assumption. Periodicity assumption. Going-concern assumption.   Economic entity assumption.

Q: Relationship of monetary policy to inflation

A: Inflation: Inflation is defined as a situation in which the general price level of the economy rises…

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: Another implication of fiscal deficit is

A: Following is the answer to the question

Q: a) What is the purpose of internal earnings targets? (b) What is the risk associated with internal…

A: ‘’Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: How does inflation affect interest rates, security prices, and financial planning?

A: Inflation is the situation in the economy due to which prices of goods and services increases, as a…

Q: What is a question that should be asked about accounts payable when forecasting?

A: Accounts payable is a liability for the company which means all payables related to credit purchase…

Q: Which of the following is a characteristic of a money market financial instrument?

A: Money market financial instruments are those instruments which have short maturity period of up to a…

Q: Which of the following is the risk due to inflation?      Business risk     Financial risk…

A: In the dynamic landscape of finance and investments, one risk looms large, silently eroding the…

Q: Accrual accounting requires estimates of future outcomes. For example, the reserve for bad debts is…

A: Financial Statements These are a company's financial activities and position in a nutshell. The data…

Q: impacts  of inflation on money investment

A: Inflation occurs when prices across a sector or an industry increases, thereby decreasing the…

Q: How does financial crisis affect the overall financial system elaborate with example?

A: Financial crisis is referred to as the wide category of the situation, where the financial assets…

Q: How does credit risk for a financial institution differs from default risk and What are the problems…

A: Lender loans money to the borrower, and there subsist as the risk of non-repayment of loan or…

Q: Which one of the following elements of credit risk does not comprise Standalone Risk Default…

A: Standalone risk is the creation of risk by the specified division, project, or asset. It can be…

Q: During a period of inflation, an account balance remains constant. With respect to this account, a…

A: Monetary items refers to those assets and liabilities whose value can be measured and expressed in…

Q: Which method should be used if management anticipates a periodof inflation? Why?

A: Inflation is a term that refers to increase in prices of commodities and services while purchasing…

Q: Define exposure, differentiating between accounting and economic exposure. What role does inflation…

A: Exposure means uncontrollable future events which can affect adversely. In the mechanism of exchange…

Q: which of the following risks is most closely associated with off balance sheet? trading risk

A: Off balance sheet practice means when some liabilities and assets are not part of company's balance…

Q: Savings rate, Recession, Depression are factors relating to: a. Macroeconomic environment b.…

A: Macroeconomic environment deals with the study of total economy on a broad view scale. Where as…

Q: How is inflation considered in financial evaluations? Does it always have to be included in the…

A: Inflation is a persistent increase in the general price level of goods and services within an…

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The basic accounting problem created by the monetary unit assumption when there is significant…

Q: Which one of the following is not the goals of Monetary policy? a. Low inflation O b. Low employment…

A: Monetary policy is a collection of activities that a country's central bank can take to regulate the…

Q: What is the basic accounting problem created by the monetary unit assumption when there is…

A: The Financial Accounting Standards Board (FASB) is known as the is private, non-profit organization…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.