Which of the following assets and/or liabilities are considered monetary?
A)Intangible Assets and Plant,Property,and Equipment
B)Bonds Payable and Common Stock
C)Cash and Accounts Payable
D)Notes Receivable and Inventories carried at cost

Question

Quizplus · Accepted Answer

Assets and liabilities that are considered monetary are those that are expressed in a currency unit and can be easily converted to cash. Cash and accounts payable are both clearly expressed in a currency unit and can be easily converted to cash, so they are considered monetary assets and liabilities. The other options do not meet these criteria. Intangible assets and property, plant, and equipment are physical assets and not expressed in a currency unit, while bonds payable and common stock are financial instruments but not easily convertible to cash. Notes receivable and inventories carried at cost are also assets, but are not expressed in a currency unit and may not be easily convertible to cash.

Which of the Following Assets And/or Liabilities Are Considered Monetary