The Price Level Problem and Some Intellectual Grooves.

This article discusses the price level problems of capital goods. The author has written the article in response to comments made by R. L. Mathews' article, "Price Level Changes and Useless Information," published in a previous issue. A simplified, four-item balance sheet featuring a transactionless interval and a change only in the general level of prices is presented. "Accounting Research Study No. 6" is discussed. The assumptions of Edgar O. Edwards and Philip W. Bell, who selected opportunity cost and current cost as the base for non-monetary asset accounting, are also discussed.