Which of the following is true of monetary assets?
A) Monetary assets are translated at historical exchange rates under all translation methods.
B) Monetary assets are those assets whose values do not fluctuate over time.
C) Monetary assets include current assets like marketable securities.
D) Monetary assets are always translated at current exchange rates.

Question

Quizplus · Accepted Answer

Monetary assets include assets that can be easily converted into cash, such as marketable securities, and their values can fluctuate over time based on market conditions. They are translated at the current exchange rate under the current rate method and at a weighted average rate under the temporal method. The historical rate method is not used for translating monetary assets.

Which of the Following Is True of Monetary Assets