Analysis of liquidity and profitability of general price level changes   Applied Study  State company for Glass and Ceramic industry

	Analysis of liquidity and profitability of general price level changes Applied Study State company for Glass and Ceramic industry
journal of Economics And Administrative Sciences/ University of baghdad
Article 1, Volume 18, Issue 66, 2012, Pages 441-471
Abstract
The accountants are preparing the financial statements under the Monetary Unit Stability Assumption without taking into consideration the changement of prices for the monetary unit. The income statement accounts containing different items of expenses and revenues. These items are not paid or obtained at one date, because the value of monetary unit is changing from one date to another , also the financial position contains different items of current and fixed assets, also contains different items of long-term liabilities and ownership rights, the continuity of applying historical cost principle will make the financial statements misleading, The adoption of financial analyst of these statements will affects the results of the analysis because these ration do not reflect the true financial situation of economic unity.
Keywords
general purchasing power acconting; purchasing power ganis and losses; financial ratios

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