Nonmonetary assets are
A)permitted to be exchanged in lieu of cash when a company's stock exceeds 20% of its fair value.
B)permitted to be exchanged in lieu of cash when a company's stock exceeds 50% of its fair value.
C)assets with a price in terms of units of currency that could change over time.
D)assets with a price that are fixed in terms of units of currency.
E)assets that are sold to an independent third party.

Question

Quizplus · Accepted Answer

Nonmonetary assets are assets that do not have a fixed price in terms of units of currency and their value could change over time. Examples of nonmonetary assets include inventory, property, plant, and equipment, and intangible assets like patents and trademarks. They can be exchanged in lieu of cash, but their value is not fixed in terms of currency. Thus, options A, B, D, and E are incorrect.

Nonmonetary Assets Are