_____ Which of the following accounts is a monetary item?
A) Cost of Sales.
B) Inventory.
C) Investment in Common Stock of IBM Corporation.
D) Additional Paid-in Capital.
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, and payables). None of the options listed (Cost of Sales, Inventory, Investment in Common Stock, Additional Paid-in Capital) are considered monetary items. They either represent expenses, assets that fluctuate in value, or equity accounts, none of which carry a fixed currency value.

_____ Which of the Following Accounts Is a Monetary Item