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The Two-Dimensional Time Frame of Common Dollar Statements.

Andrew D. Bailey; Daniel L. Jensen

Associate Professors of Accounting, Purdue University. 1

The Accounting Review 1977

Abstract Common dollar financial statements add a second time dimension to financial reporing that beginning students of accounting mag find difficult to grasp. The authors find that students' difficulty in understanding the roll-forward adjustment and the distinction between monetary and nonmonetary items is alleviated when common dollar statements are introduced with a two-dimensional display. The two-dimensional display accommodates the money time dimension as distinguished from statement time, the monetary/nonmonetary distinction, the computation of income and the reconciliation of equity accounts as between statements based on common dollar magnitudes.

DOI
10.2308/tar-4493739
Volume
52 (1)
Pages
229-232
Language
en
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