Monetary assets include
A) cash, accounts receivable and inventory.
B) accounts and notes receivable and inventory.
C) cash, accounts and notes receivable.
D) accounts receivable and property, plant and equipment.

Question

Quizplus · Accepted Answer

Monetary assets are assets that can be readily converted into cash, and therefore include cash and accounts and notes receivable. Option A includes inventory, which is not a monetary asset. Option B includes accounts and notes receivable, which are monetary assets, but also includes inventory which is not. Option D includes property, plant and equipment, which are not monetary assets. Therefore, option C is the best choice as it includes only cash and accounts and notes receivable, which are both monetary assets.

Monetary Assets Include