The recognition of the deficiencies of historical cost accounting has led to the advocacy of the recognition of the effects of inflation in the accounts. The following statements characterize the recognition of the effects of inflation except:

(a) all accounts in the financial statements are affected to a certain extent by inflationary conditions, and the effect is more explicit in some accounts than in others

(b) restating the entire financial statements in terms of current prices is a very complicated process and requires considerable additional work

(c) users of financial statements advocate the recognition of the effects of inflation in the accounts because historical cost creates the impression that the business entity is more profitable than what it really is

(d) inflation affects more drastically those items in the accounts where the rate of turnover is quite high