_____ Which of the following accounts is a monetary item?
A) Depreciation Expense.
B) Inventory.
C) Investment in Common Stock (of a subsidiary).
D) Intercompany Payable-Long-term portion
E) None of the above.

Question

Quizplus · Accepted Answer

Monetary items are assets and liabilities that carry a fixed value in terms of currency units (e.g., cash, receivables, payables). Intercompany Payable-Long-term portion is a liability with a fixed or determinable amount to be paid, thus classifying it as a monetary item.

_____ Which of the Following Accounts Is a Monetary Item