A given balance sheet contains dollar amounts resulting from transactions that occurred in several different time periods.

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A given balance sheet contains dollar amounts resulting from transactions that occurred in several different time periods. Accountants add these dollar amounts in the computation of such numbers as current assets and total assets, even though the amount of goods and ser¬ vices a dollar could purchase has varied widely across these time periods. What basic assumption allows accountants to make these additions? Is this assumption realistic? How are accounting reports misstated because they are based on this assumption?

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