Abstract A distinction in accounting which is often difficult for students to grasp concerns the difference in purpose between adjustments for general and specific price-level changes. This article describes how indifference curve analysis can be used to explain to students why adjustment to market value reflects unrealized gains and losses resulting from changes in the price of business assets relative to other goods, whereas general price-level adjustments eliminate gains and losses caused by the changing value of all goods vis a vis money, as well as to reflect gains and losses on monetary items.
William L. Call (Sat,) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: