Skip to content
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA FM

Inflation and Payables

IIlham5y ago
Does debt lose value with inflation? If so, how?
John MoffatJohn MoffatTutor5y ago#1
The amount owed remains the same in $'s, but as our income increases due to inflation it becomes a smaller proportion and in that sense loses value.
Sign in to reply to this topic.