According to the monetary/nonmonetary method,monetary balance sheet accounts include
A)for example,cash,marketable securities,accounts receivable,notes payable,accounts payable of a foreign subsidiary.
B)for example,stockholders' equity and long term debt.
C)for example,inventory paid for in cash,but not working capital.
D)COGs,Sales,Net Income.

Question

Quizplus · Accepted Answer

The monetary/nonmonetary method categorizes balance sheet accounts into monetary and nonmonetary items. Monetary items are those that are fixed and measurable in terms of currency, such as cash, marketable securities, accounts receivable, and notes payable. Nonmonetary items are those that are expressed in terms other than currency, such as inventory, property, and equipment. Choice A includes examples of monetary balance sheet accounts. Choice B includes nonmonetary balance sheet accounts. Choice C includes a mix of monetary and nonmonetary items, and choice D includes income statement accounts, not balance sheet accounts.

According to the Monetary/nonmonetary Method,monetary Balance Sheet Accounts Include