Which of the following is an example of a non-monetary transaction?
A)The purchase of inventory on account.
B)The recording of amortization expense.
C)The expiry of prepaid insurance.
D)The purchase of land by issuing shares.

Question

Quizplus · Accepted Answer

Non-monetary transactions involve the exchange of non-cash assets or liabilities for other non-cash assets or liabilities. The purchase of land by issuing shares is an example of a non-monetary transaction because it involves exchanging shares (a non-cash asset) for land (another non-cash asset), without the direct use of cash or cash equivalents.

Which of the Following Is an Example of a Non-Monetary