Question

Morgan Shipping held cash of $1 million throughout 2017 when the general price level decreased by over 30 percent Morgan Shipping has more than $1 million of purchasing power at the end of the period. has less than $1 million purchasing power at the end of the period. must recognize the gain due to general price level increases in its income statement. has the same $1 million purchasing power at the end of the period as at the beginning of the period. Question 6 2 pts Everett, Inc.'s reporting period ends on June 30th every year. This is an example of: matching fiscal period. materiality relevance.

Answer 1

Part 5

Answer is option A

A. has more than $1 million of purchasing power at the end of the period.

There is increase in purchasing power due to decrease in general price level.

Part 6

Answer is option B

B. Fiscal period

The fiscal period is the period stated in the financial statements. It is used for the purpose of accounting to prepare financial statements.