_____ Which of the following accounts is a monetary item?
A) Sales.
B) Intercompany Bonds Payable.
C) Investment in Common Stock of IBM Corporation.
D) Deferred Income Tax Expense.
E) None of the above.

Question

Quizplus · Accepted Answer

Intercompany Bonds Payable is considered a monetary item because it represents a fixed or determinable amount of money that the company is obligated to pay in the future. Monetary items are those that are to be received or paid in fixed or determinable amounts of money, such as cash, receivables, and payables.

_____ Which of the Following Accounts Is a Monetary Item