WEAKNESSES OF INDEX-NUMBER ACCOUNTING.
Economic transactions find expression in ordinary business activity through the use of money price and it is the aid that accountant has given a businessman in recording economic and financial transactions in the form of price that has made accounting useful. But during periods of monetary inflation, when most prices suddenly spurt upward, prices assume new importance and present new problems. Price is no longer primarily a result of market conditions but it is also influenced by governmental financial policy. It is during these times of stress and strain that some people begin to wonder whether or not cost-price can safely be used to record at all times the value facts about things given and received by a business enterprise. Perhaps a businessman's dilemma can be made clear by following through a chain of events that takes place in a violent inflationary boom. Whereas in normal times an accountants attention is focused on the efficient utilization and exchange of goods, rights and services placed at his disposal.
- DOI
- 10.2308/tar-7081583
- Volume
- 12 (2)
- Pages
- 123-132
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref